India’s Auto Industry Pushes for Global EV Leadership

Union Minister for Heavy Industries and Steel H D Kumaraswamy has urged India’s automobile and auto-component industry to focus on design, technology and higher domestic value addition to make India a global leader in electric vehicles (EVs). The minister said India’s EV progress should not be judged only by the number of EVs sold. Companies need to invest more in advanced technology, cleaner mobility, efficient components and innovation, with the goal of not just “Make in India” but “Make for the World.” The government will continue working with industry bodies such as ACMA and SIAM to improve policy implementation, resolve operational challenges and encourage investment and innovation. Why It Matters for the Economy The automobile sector has a large multiplier effect across steel, electronics, engineering, chemicals, logistics and services. Greater localisation could reduce dependence on imports, strengthen domestic supply chains and create more manufacturing jobs. The government’s PLI Scheme for Automobile and Auto Components is already showing progress. As of June 30, 2026, the scheme has attracted ₹45,477 crore of investment and generated more than 67,000 jobs. Impact on Stock Market Positive for: EV manufacturers Auto-component companies Battery and power-electronics makers Semiconductor and electronics suppliers Steel and engineering companies Companies benefiting from localisation Potential long-term benefits: Higher domestic value addition, export opportunities, technological upgrades and improved competitiveness of Indian auto companies. Key takeaway: India is shifting from simply increasing EV sales to building a complete, technology-driven EV manufacturing ecosystem capable of competing globally. This could create long-term opportunities for Indian auto and component companies that successfully localise technology and expand exports.