India Clean Mobility Manufacturing Pushes Investment and Localization

India Pushes Advanced Mobility Manufacturing

Minister of Heavy Industries and Steel HD Kumaraswamy has urged India’s automobile and component manufacturers to increase investment in clean and emerging technologies as the government seeks to establish the country as a global manufacturing hub for advanced mobility. Speaking at the 66th annual session of the Automotive Component Manufacturers Association of India (ACMA), Kumaraswamy said the sector’s next growth phase should extend beyond meeting domestic demand and focus on developing products and technologies that can compete internationally. He called for bolder investment aimed not simply at making products in India, but at creating solutions in India for global markets, with greater scale, deeper localization and faster innovation driving the industry forward.

Localization Becomes Central to EV Transition

Kumaraswamy said the automotive and component industry is central to India’s manufacturing ambitions because it is closely connected with steel, electronics, engineering, chemicals, logistics and services. The sector also supports a large network of MSMEs and millions of jobs, increasing its importance as industrial policy shifts toward higher domestic value addition. “I urge the automobile and auto component industry to invest more boldly in cleaner, efficient and emerging technologies, not merely to make in India but to make for the world,” Kumaraswamy said. He added that the next phase should be driven by higher scale, deeper localisation and faster innovation as manufacturers build capabilities for global markets.

Domestic EV Technology and Battery Capacity

The minister said the success of India’s electric-mobility transition should not be assessed only by the number of electric vehicles sold. He said it should also reflect how much technology is designed in India, how much value is added domestically, how many MSMEs participate in the emerging supply chain and how effectively products made in India compete in global markets. The comments come as the government works to deepen localization across batteries, electric powertrains and other critical EV components. Kumaraswamy highlighted the Production Linked Incentive scheme for Advanced Chemistry Cell battery storage, which has an outlay of ₹18,100 crore and targets 50 GWh of domestic battery manufacturing capacity.

Rare-Earth Magnets and Supply Chain Security

Kumaraswamy also pointed to government efforts to develop domestic capacity for sintered rare-earth permanent magnets, which are important inputs for electric motors. He said the initiative is intended to reduce dependence on strategic imported inputs and strengthen supply-chain security. “This initiative will help reduce strategic input dependence and strengthen supply chain security,” Kumaraswamy said. The broader policy direction links vehicle electrification with domestic manufacturing capability, rather than treating EV adoption as a standalone demand-side objective. By expanding local production of batteries, magnets, electric powertrain components and related technologies, the government aims to improve resilience while creating opportunities for Indian manufacturers and MSMEs to participate more deeply in the emerging mobility supply chain.

Auto PLI Investments Reach ₹45,477 Crore

Progress under the automobile and auto component Production Linked Incentive scheme was another focus of the minister’s address. As of June 30, 2026, approved applicants had reported investments of ₹45,477 crore and created more than 67,000 jobs, according to Kumaraswamy. He said government incentive programs are designed to encourage investment, domestic value addition and advanced-technology manufacturing while supporting the transition toward cleaner mobility. The figures indicate the scale of capital deployment and employment associated with the policy framework, while also reinforcing the government’s emphasis on linking financial incentives with manufacturing expansion, technological advancement and stronger domestic industrial capabilities across the automotive and component ecosystem.

PM E-DRIVE Expands Electric Mobility Support

The government is also increasing support for electric mobility through the PM E-DRIVE scheme. Its outlay has been increased by ₹1,000 crore to ₹11,900 crore, with the additional allocation intended to continue support for electric two-wheelers. The scheme now targets about 45.79 lakh electric two-wheelers. Kumaraswamy said more than 25.66 lakh electric two-wheelers and 2.75 lakh electric three-wheelers had been supported so far, while support had also been extended to 53 electric trucks. The minister’s figures show that policy support is being directed across multiple electric-vehicle segments as adoption and domestic production develop together under the government’s broader clean-mobility strategy.

Charging and Electric Bus Infrastructure Expands

Charging and public-transport infrastructure are being expanded alongside vehicle incentives. The government has allocated ₹4,391 crore for deploying 14,028 electric buses, with around 13,800 already allocated. It has also earmarked ₹2,000 crore for public charging infrastructure, and proposals worth ₹729 crore covering 7,254 chargers have been approved. Separately, the PM e-Bus Sewa Payment Security Mechanism has an outlay of ₹3,435 crore and is intended to support deployment of more than 38,000 electric buses by providing payment security to operators. Kumaraswamy said 27,555 e-buses have already been registered under the mechanism, underscoring the parallel expansion of charging and fleet infrastructure.

India Targets a Leadership Role in Global Mobility

Kumaraswamy said the government will continue working with ACMA, the Society of Indian Automobile Manufacturers (SIAM) and other industry stakeholders to improve scheme implementation and address operational issues. He argued that India’s ambition should extend beyond becoming a large automobile market or manufacturing base. The longer-term objective, according to the minister, is for the country to develop technologies, supply chains and industrial capabilities that can shape the global mobility transition. His message to manufacturers therefore combines stronger investment with localization, innovation and international competitiveness, positioning advanced mobility as an opportunity for India to lead rather than simply participate in a rapidly changing global industry. “India should not merely participate in the global mobility transition; India should help lead it,” Kumaraswamy said.

Frequently Asked Questions

Why is localization important to India’s electric mobility transition?
Localization matters because it increases domestic value addition, strengthens supply-chain security, expands MSME participation, and supports globally competitive electric-mobility products. Kumaraswamy said EV progress should be measured not only by sales, but also by technology designed in India, domestic value addition, MSME participation in the new supply chain, and the ability of Indian products to compete globally. The government is therefore targeting domestic capacity across batteries, electric powertrains, rare-earth permanent magnets and other critical components. This approach is intended to reduce strategic import dependence while making electrification a broader manufacturing opportunity.

What are the latest investment and EV support figures highlighted by Kumaraswamy?
Kumaraswamy highlighted ₹45,477 crore of reported PLI investments and more than 67,000 jobs as of June 30, 2026, alongside expanded PM E-DRIVE support. The scheme’s outlay has increased by ₹1,000 crore to ₹11,900 crore and now aims to support about 45.79 lakh electric two-wheelers. More than 25.66 lakh electric two-wheelers and 2.75 lakh electric three-wheelers had been supported, while 53 electric trucks also received support. Infrastructure measures include ₹2,000 crore for public charging and ₹4,391 crore for 14,028 electric buses.