Addressing the 66th Annual Convention of the Society of Indian Automobile Manufacturers (SIAM) in New Delhi, Gadkari said the automobile sector is currently valued at over Rs 22.75 lakh crore. He said the industry contributes nearly 15 per cent of the country’s GST collections and supports around four crore direct and indirect jobs.
Gadkari highlighted that India’s automobile exports grew by 24 per cent during 2025-26. He expressed confidence that the sector’s contribution to the country’s economic growth will continue to expand.
The Union Minister described the Bharat New Car Assessment Program (Bharat NCAP) as a major success story, noting that more than 30 vehicle models from 11 companies have already been certified. He said the programme has significantly reduced testing costs and strengthened the credibility of Indian vehicles in global markets.
Gadkari also announced that Bharat NCAP 2.0 will come into effect from October 2027. The enhanced programme will introduce higher safety standards covering crash avoidance, pedestrian protection and post-crash evacuation.
Emphasising road safety, Gadkari said the government is planning to introduce a graded point system for driving licences. Under the proposed initiative, repeated traffic violations could lead to suspension or cancellation of licences, while responsible drivers may receive insurance and other incentives.
The Union Minister called for greater industry participation in driver training and urged companies to establish driving training, vehicle fitness and scrapping centres, particularly in aspirational districts. He said such initiatives could be undertaken through CSR initiatives and viable business models to address the shortage of skilled drivers.
Gadkari also announced stricter safety norms for buses. Revised bus body regulations requiring mandatory type approval and digital inspections are now in force to improve passenger safety. He added that testing charges have been reduced and approval timelines shortened to support manufacturers.
On cleaner mobility, Gadkari highlighted the recently launched Parivartan Scheme for the National Capital Region. The scheme aims to replace older commercial vehicles with Bharat Stage VI (BS-VI) and electric vehicles through incentives including road tax waivers, registration fee exemptions and loan support.
He said the scheme is expected to facilitate the scrapping of over two lakh older trucks and buses while strengthening the vehicle scrapping ecosystem in the National Capital Region.
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