Kumaraswamy Urges Auto Industry to Boost Localisation, EV Technology

Union Minister for Heavy Industries H.D. Kumaraswamy on Wednesday urged the automotive and auto component industry to step up investments in technology, design and domestic value addition, saying India's electric mobility transition should not be judged merely by the number of electric vehicles sold. Addressing the 66th annual session of the Automotive Component Manufacturers Association (ACMA) here, the minister said the next phase of India's mobility transition should focus on building scale, deepening localisation, accelerating innovation and establishing the country as a globally competitive hub for advanced and green mobility technologies.

"Our success cannot be measured only by the number of electric vehicles sold. It must also be measured by how much technology is designed in India, how much value is added domestically, how many MSMEs participate in the new supply chains and how effectively Indian products compete in global markets," Kumaraswamy said. He called on automobile and auto component makers to invest more boldly in cleaner, more efficient and emerging technologies, with the objective of not only making products in India but also developing them for global markets.

"India should not merely participate in the global mobility transition; India should help lead it," he said. Kumaraswamy said government schemes were supporting investments in domestic value addition, advanced technologies and manufacturing, while facilitating the shift towards cleaner mobility. He said the Production-Linked Incentive (PLI) scheme for the automobile and auto component industry was showing encouraging results. As of June 30, 2026, approved applicants under the scheme had reported investments of Rs 45,477 crore, creating more than 67,000 employment opportunities, he said.

The minister said the automotive and auto component industry was central to India's industrial growth, supporting millions of livelihoods and anchoring a large micro, small and medium enterprises (MSME) ecosystem. The sector also has a multiplier effect across industries such as steel, electronics, engineering, chemicals, logistics and services, he added. Kumaraswamy said the Ministry of Heavy Industries would continue to work with industry bodies including ACMA and the Society of Indian Automobile Manufacturers (SIAM) to improve scheme implementation, address operational issues and create an environment conducive to investment and innovation. According to him, these efforts would be important as India works towards the goal of becoming a developed nation by 2047.

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