The Union Ministry of Heavy Industries (MHI) has initiated work on a long-term automobile sector policy roadmap aligned with India’s goal to become a developed nation by 2047.

Named the Automotive Mission Plan (AMP) 2047, the strategy involves seven sub-committees comprising stakeholders from various line ministries, industry associations, and academia, according to an MHI statement.

This comprehensive plan seeks to address challenges such as technological advancement and charging infrastructure development. The inaugural meeting of the AMP 2047 sub-committees was convened to outline its objectives and framework. MHI Additional Secretary Hanif Qureshi emphasised, “The vision for 2047 is not merely aspirational but a strategic roadmap backed by concrete targets for sector growth, exports, and industry advancement. We must think beyond specific technologies or companies and focus on India’s global standing in 2047, aiming to increase our share in global automotive trade through innovation and quality.”

AMP 2047 will set interim milestones for 2030, 2037, and 2047, building on previous decade-long plans from 2006–16 and 2016–26.

This policy roadmap is crucial as the auto sector contributes approximately 7.1 per cent of India’s total economic output and nearly half of the country’s manufacturing output, per an April 2025 NITI Aayog report.

Representatives from ministries including Commerce, Environment, Forest and Climate Change, Power, Road Transport and Highways, Petroleum and Natural Gas, along with industry bodies such as the Society of Indian Automobile Manufacturers (SIAM), Automotive Component Manufacturers Association of India (ACMA), Confederation of Indian Industry (CII), and Federation of Indian Chambers of Commerce and Industry (FICCI) participated in the AMP 2047 launch. Academic institutions, research think tanks, and testing agencies will also contribute.

The Centre’s push for a coherent long-term auto policy comes amid divisions within the industry over state-level clean mobility policies.

India, the world’s third-largest automobile market by sales, supports electric vehicles through schemes like the PM E-Drive and the production-linked incentive scheme for automobiles and auto parts (PLI-Auto).

The electric vehicle market in India gained momentum in FY25, with sales rising by around 17 per cent over the previous year, according to the Vahan portal. Over 1.9 million EVs were sold in FY25, compared with approximately 1.6 million in FY24.

The clean mobility push faces challenges, including debate among automakers on incentives for strong hybrid vehicles. Nonetheless, the government remains committed to supporting all forms of clean mobility, as noted by Union Heavy Industries Minister H.D. Kumaraswamy.

Beyond decarbonisation, India’s auto sector is grappling with supply chain risks, including China’s strict export controls on rare earth magnets, vital components in vehicle manufacturing. This has raised concerns about potential production cuts.

Mint reported in July 2024 that AMP 2047 will focus on diverse powertrains, including fossil fuels, flex fuels, batteries, and green hydrogen.

The ongoing AMP 2016–26 targets workforce upskilling and export promotion. Data from SIAM, cited by MHI in a parliamentary briefing, shows the sector provided direct and indirect employment to about 30.7 million people in FY20.

Randheer Singh, former director of electric mobility at NITI Aayog, commented, “For a country as diverse and demand-sensitive as India, an all-inclusive approach is essential. AMP 2047 must unify fragmented policies into a coherent national strategy—accelerating localisation, de-risking investments, and positioning India as a global mobility hub.”

He added, “The greatest challenge is not just technological but synchronising market evolution with regulatory certainty and long-term capital planning.