Prices of EVs and petrol, diesel vehicles to equalize in two years: Nitin Gadkari

Nitin Gadkari, Union Minister for Road Transport and Highways, has projected that subsidies and incentives for electric vehicles (EVs) may no longer be necessary within the next two years. Speaking at the Automotive Component Manufacturers Association (ACMA) annual event, Gadkari explained that the cost of EVs is expected to align with that of petrol and diesel vehicles in two years, potentially rendering additional financial support redundant.

“I am not against further subsidies for EVs. If the Finance Minister and Industries Minister want to provide more support, I have no issue with that. However, in two years, incentives may no longer be necessary as EVs will reach cost parity with traditional fuel vehicles,” Gadkari stated.

Reflecting on the industry’s changing views, Gadkari noted that automotive giants in India initially dismissed his advocacy for electric vehicles a decade ago. “Ten years ago, when I was advocating for electric vehicles, the big players in the automotive sector didn’t take me seriously. Today, they admit they may have missed the bus,” he observed.

In addition to discussing EV cost parity, Gadkari addressed the critical issue of road safety. He pointed out that poorly designed and engineered roads are significant contributors to traffic accidents across the country. “Road safety is a serious concern for us. It’s not just about vehicle safety, but also about how we design and engineer our roads,” Gadkari emphasized. He urged automobile companies to play a role in improving safety measures as part of their Corporate Social Responsibility (CSR) commitments.

Gadkari also forecasted a notable reduction in India’s dependency on imports of lithium-ion batteries, currently valued at ₹1.68 lakh crore. He anticipated that this reliance could decrease substantially in the next 2-3 years due to increased domestic production and advancements in alternative battery technologies.

Sancheti College

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