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On March 20, 2025, Prime Minister Narendra Modi addressed the 66th SIAM Annual Convention, delivering a message that positioned India’s automobile industry as a rising force in global manufacturing. With free trade agreements widening market access and domestic capabilities strengthening, Modi said the sector is "well placed to further expand its global presence."
The remarks come at a time when the US is increasingly eyeing India as both a competitive manufacturing hub and a potential partner in diversifying supply chains away from China. For American automotive executives and policymakers, the message signals that India’s auto sector is not just growing—it’s actively shaping the next phase of global mobility.
Modi highlighted a fundamental transformation underway in the industry, driven by energy efficiency, diversification, technology, and advanced manufacturing. He urged Indian automakers to continue innovating as the country moves toward what he called "the next generation of mobility."
“With recent Free Trade Agreements providing greater access to international markets, the Indian automobile sector, already recognised across many parts of the world, is well placed to further expand its global presence,” Modi said.
The Prime Minister pointed to India’s economic growth and expanding infrastructure as key demand drivers. Better connectivity and more efficient logistics, he noted, are reducing costs and making Indian manufacturing more competitive. “This is strengthening the automobile sector and contributing to India’s economic growth,” he added.
One of the most concrete developments Modi highlighted was the rapid expansion of EV charging infrastructure, which he said is encouraging greater adoption of electric vehicles and creating new innovation opportunities. India’s EV market, though still nascent, has seen a surge in two- and three-wheelers, and the government is pushing for wider adoption of passenger EVs.
“As India moves towards the next generation of mobility, SIAM can play an important role in shaping this transformation and taking India’s automotive capabilities to greater heights,” Modi said.
The Society of Indian Automobile Manufacturers (SIAM) represents leading automakers including Maruti Suzuki, Tata Motors, Mahindra & Mahindra, and Hyundai Motor India. The convention drew industry leaders who discussed export targets, localization strategies, and the role of technology in achieving net-zero goals.
Modi also credited reforms aimed at improving the ease of doing business, including the removal of redundant laws and unnecessary compliances, for giving fresh impetus to the industry. He specifically cited the Production Linked Incentive (PLI) Scheme for automobiles and auto components, and the "Make in India" initiative, as having strengthened manufacturing capabilities.
The PLI scheme, launched in 2021, offers incentives worth ₹26,000 crore (about $3.1 billion) to boost domestic production of advanced automotive technology products, including EVs and hydrogen fuel cell components. As of early 2025, the scheme has attracted investments from global players like Samsung SDI, Panasonic, and Tata AutoComp, and is expected to lower India’s reliance on imported components.
“The PLI scheme is a game-changer, and it’s already showing results in terms of increased local value addition,” said a senior industry executive who attended the convention on condition of anonymity. “US companies looking for alternative sourcing destinations should take note.”
For the US market, India’s export ambitions could mean both competition and collaboration. Indian-made vehicles, primarily from Hyundai and Kia, have already gained a foothold in North America, while Maruti Suzuki supplies compact cars to markets in Africa and Latin America. With the recent India-U.S. trade framework agreement and ongoing discussions on tariff reductions, the path for Indian auto exports to the US could widen.
According to a report by the Indian government’s think tank NITI Aayog, India’s auto component exports to the US stood at $6.2 billion in 2024, a 15% increase year-on-year. The US is India’s second-largest export destination for auto parts after Europe. The FTAs Modi referenced include the India-UAE Comprehensive Economic Partnership Agreement (CEPA) and the India-Australia Economic Cooperation and Trade Agreement (ECTA), both of which have reduced tariffs on certain vehicle categories.
“India’s auto industry is now at a tipping point,” said Dr. Rajesh Kumar, an automotive analyst at the Center for Global Trade Studies. “If the government continues to invest in EV infrastructure and skill development, India could become a major hub for electric and hybrid vehicle assembly, serving both domestic and export markets.”
Modi concluded his message by urging the industry to continue innovating, pursue excellence, and proactively chart a “bold pathway towards Viksit Bharat” (Developed India). He said the journey would create transformative opportunities and significant growth for the mobility sector while strengthening transport as a key pillar of national development.
“May this Convention inspire new ideas, forge
