Opt for new models to bridge output capacity issues for CVs, says Gadkari
This story was originally published at 14:00 IST on 3 September 2026
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--CONTEXT: Road Minister Gadkari speaking at SIAM event in Delhi
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NEW DELHI – Automobile original equipment manufacturers should look for innovative new models to bridge the shortfall in output capacity amid strong demand for commercial vehicles, particularly electric buses and electric trucks, Nitin Gadkari, the Union Minister for Road Transport and Highways, said at the 66th Annual Convention of Society of Indian Automobile Manufacturers Thursday. "The problem is we have shortage of buses. We have manufacturing capacity maximum up to 70,000 (units) and now demand is more than 150,000 (units)," Gadkari said, adding that companies can opt for a build-operate-transfer model to boost output.
"It is really economically viable and huge potential is there. People want good comforts, now they are ready to give good price for that," Gadkari said. Giving the example of Bengaluru, Gadkari said that buses are being stopped because of shortage of drivers. "We are making road network, we are already investing crores of rupees in making highways," Gadkari said. He called on companies to consider investing money in driver training centres and scrapping centres with the perspective of social responsiblity.
"If you want money, there is no problem. It is a part of the business. But at the same time, you can consider some other thing which are in the interest of society," Gadkari said. Investing through their corporate social responsibility funds, companies may find it economically viable and helpful if they were to make these investments, the minister said.
Gadkari said the government will launch Bharat NCAP 2.0 in October 2027 to evaluate the entire vehicle safety chain, including crash avoidance, passenger protection, pedestrian safety, and post-crash care. He noted that over 30 models from 11 manufacturers have been certified under Bharat NCAP programme and emphasised that its cost-effectiveness at INR 6 million per model, which is 75% lower than global testing costs, is also attracting foreign manufacturers to test vehicles in India and boosted Indian automotive exports
The minister highlighted that the country record approximately 500,000 accidents and up to 180,000 deaths annually, primarily impacting the 18–36 age demographic. The ministry is also introducing a graded point system for driving licences and vehicle registration certificates. "Every RTO (regional transport office) will cut points on the driving license, and after a particular limit, the license will get suspended or even cancelled. We have to discourage the people where this misbehavior is responsible for the public health. The people who have good points, they will get incentives from insurance companies, from automobile companies, and others..., those who are habitually making mistakes, the penalty is there," he said.
Additionally, under a training policy launched in January 2025, the government aimed at establishing 1,600 driving training centres, expanding on the 24 operational and 112 planned facilities that have already trained nearly 1 million drivers.
Gadkari urged the industry to support scrapping of vehicles by providing discounts or concession to people who have scrapping certificates. This will help reduce costs, increase sales, and improve production capacity, he said.
Gadkari said the government has approved the new AIS-228 standards for the retrofitting of rear emission control devices. Implementing this retrofitting on BS-6 heavy vehicles can achieve up to a 90% reduction in particulate matter and a 60% reduction in nitrogen oxides particles. End
Reported by Devanshu Singla, Anand JC, and Sagar Sen
Edited by Akul Nishant Akhoury
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