Union Minister for Road Transport & Highways, Mr. Nitin Gadkari, recently addressed the Society of Indian Automobile Manufacturers (SIAM) convention, shedding light on the significant developments and future plans in India’s automobile sector. He reported that the country currently has 63 operational scrapping centres, with 60 more under construction and 40 in the pipeline. Despite this, Mr. Gadkari stressed that the current infrastructure is still inadequate to meet the needs of India’s vast automobile population. He highlighted the massive potential of the scrapping industry, projecting an 18-20% boost in sales and the creation of 35,000 jobs.

Additionally, Mr. Gadkari announced the establishment of a new testing agency in Pune, which will cost US$ 53.6 million (Rs. 450 crore) and is expected to be operational within 3 months. This new facility aims to enhance the quality of vehicle testing, supporting the automobile industry and contributing to better export prospects. He noted the critical role of Bharat-NCAP in improving vehicle standards and urged manufacturers to produce high-quality vehicles while exploring alternative fuel options.

Mr. Gadkari also outlined ambitious goals for the CNG vehicle market, noting its current value at US$ 95.29 billion (Rs. 8 lakh crore). He set a target to increase the number of CNG stations to 20,000 by 2030, up from the current 6,000. Furthermore, he emphasized the need to develop a gas economy and a methanol economy to lower LPG costs and promote the use of LNG in trucks, potentially saving up to US$ 14,293.71 (Rs. 12 lakh) annually.

Looking ahead, Mr. Gadkari highlighted India’s potential in hydrogen technology, with an aim to produce 5 million metric tonnes of hydrogen annually. This could generate 125 GW of energy and create 6 lakh jobs with an investment of US$ 95.29 billion (Rs. 8 lakh crore). He underscored the automobile industry’s vital role in India’s US$ 5 trillion economy journey, noting its contribution of 35% to manufacturing, 4.5 crore jobs, and US$ 41.69 billion (Rs. 3.5 lakh crore) in GST revenue.

On the issue of road safety, Mr. Gadkari highlighted the concerning statistics of 5 lakh accidents and 1.68 lakh deaths last year, calling for stricter traffic rule adherence. He also noted the significant growth in the electric vehicle (EV) sector, with EVs now accounting for 56% of all two-wheelers. The Indian EV market is projected to reach US$ 238.24 billion (Rs. 20 lakh crore) by 2030.

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