Green Mobility in Focus: PM Modi Highlights Opportunities for India’s Auto Sector

Prime Minister Narendra Modi on Thursday said that India is rapidly moving toward a future-ready transportation ecosystem, powered by strong policy frameworks and visionary reforms. Addressing the 65th annual convention of the Society of Indian Automobile Manufacturers (SIAM), he highlighted that the automotive sector is increasingly embracing sustainability, with a focus on green technologies, electric vehicles (EVs), and other eco-friendly alternatives.

“These advancements strengthen India’s clean mobility goals while creating opportunities in design, production, and deployment. The growth of startups, especially in energy storage, is encouraging… As the nation advances toward global leadership in green and smart transportation, opportunities for investment and collaboration are immense,” Modi said in a letter to the convention.

He emphasized the automobile industry’s vital role in driving economic growth and enhancing quality of life. “The automobile industry has been a torchbearer of the Make in India initiative, boosting global confidence in Indian manufacturing and positioning India as a hub of automotive excellence,” the Prime Minister noted.

The Prime Minister’s message was read out at the convention by SIAM president Shailesh Chandra. He underlined that “powered by strong policy frameworks and visionary reforms, India is moving rapidly towards building a future-ready transportation ecosystem. This integration of modern technology with world-class infrastructure forms the backbone of India’s ambitious growth story in mobility.”

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Notably, India today ranks among the world’s largest automobile markets. It is the third-largest passenger vehicle (PV) market and the largest two-wheeler market globally. However, industry data from SIAM shows that volumes were under pressure in Q1 FY26. PV sales slipped 1.4% year-on-year to 10,11,882 units, CV volumes declined 0.6% to 2,23,215 units, three-wheeler sales remained flat at 1,65,211 units, while two-wheeler volumes fell 6.2% to 46,74,562 units.

Despite these short-term challenges, Modi stressed that government–industry collaboration is essential to achieving true self-reliance across the entire automobile manufacturing value chain. This partnership, he said, is crucial for realizing India’s vision of a ‘Viksit Bharat’ and positioning the country as a global leader in sustainable and smart mobility.

The Prime Minister also highlighted the rising influence of innovation and entrepreneurship within the sector. Startups, particularly those working on energy storage and clean mobility solutions, are playing a key role in advancing technology adoption and creating economic opportunities. He pointed out that previous initiatives to promote EVs, integrate renewable energy in transport, and boost domestic manufacturing capabilities have laid the foundation for India’s leadership in green mobility.

While India’s EV industry is growing, adoption remains uneven across segments. Currently, EVs account for about 5% of passenger vehicle volumes, under 2% of commercial vehicle volumes, over 62% of three-wheeler sales, and around 8% of two-wheeler sales. Modi acknowledged this gradual pace but reiterated that as the sector matures, it will create immense investment and collaboration opportunities.

His address underscored that a coordinated effort between the government, industry, and innovators is essential to drive the nation’s transition toward a cleaner, smarter, and future-ready mobility ecosystem.