India’s EV market set to reach Rs 20 lakh crore by 2030, create 5 crore jobs: Nitin Gadkari

New Delhi: Union Minister for Road Transport and Highways Nitin Gadkari on Thursday projected that India’s electric vehicle (EV) market will grow to Rs 20 lakh crore by 2030 and generate five crore jobs, underscoring the sector’s potential amid rising adoption and manufacturing ambitions.

Addressing a summit organised by the CII-ITC Centre of Excellence for Sustainable Development, Gadkari said 57 lakh electric vehicles are currently registered in the country, accounting for 7 per cent market penetration.

“India’s electric vehicle market will be worth Rs 20 lakh crore by 2030. It will also create five crore jobs by 2030,” he said.

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The minister highlighted a supply-demand gap in the electric bus segment, noting annual demand of one lakh units against the current manufacturing capacity of 50,000–60,000.

He also pointed to the strong export performance of leading two-wheeler makers Bajaj Auto and Hero MotoCorp, which ship more than 50 per cent of their production overseas.

Gadkari expressed confidence that India can become the world’s largest automobile industry within five years, citing trained manpower, competitive costs and quality production.

“Within five years, our target is to make India’s automobile industry the number 1 in the world… it is difficult, but not impossible,” he said.

He noted that the size of the Indian automobile industry has expanded from Rs 14 lakh crore when he took charge to about Rs 22–23 lakh crore currently. By comparison, the US industry stands at Rs 78 lakh crore and China’s at Rs 47 lakh crore. Most major global automobile companies already operate in India due to the combination of quality and lower costs, he added.

Gadkari linked the push for EVs and alternative fuels to India’s heavy dependence on fossil fuel imports, which total Rs 22 lakh crore annually and contribute to pollution.

“We are making good highways… Good roads with alternatives, and bio-fuel is the future,” he said.

On logistics, the minister said a report by IIT Madras, IIT Kanpur and IIM Bangalore showed that expressways and economic corridors have already brought down logistics costs from 16 per cent to 10 per cent of GDP. The government’s target is to reduce this further to 8 per cent to enhance global competitiveness.

Gadkari stressed that without lower logistics costs, Indian industry would struggle to compete internationally.