Cost Of Petrol And Diesel Vehicle Will Be Same As Electric In 2 Years: Nitin Gadkari

Gadkari said the prices of EV batteries have already fallen significantly — from $150 to around $108-$110 per kilowatt hour — the cost is expected to further drop to $100 per kilowatt hour

On incentives for vehicle scrappage, Nitin Gadkari said they may not be necessary, as market forces would likely push automakers to take proactive measures to attract consumers without government intervention.

Source : PTI

With the rapid decline in lithium-ion battery prices, electric vehicles (EVs) are on track to match the costs of petrol and diesel vehicles within the next two years, Union Minister Nitin Gadkari has said. Speaking at the annual session of the Automotive Components Manufacturers Association (ACMA), Gadkari, the Minister for Road Transport and Highways, highlighted that EVs will soon maintain cost parity without the need for government subsidies.

He noted that while the prices of EV batteries have already fallen significantly — from $150 to around $108-$110 per kilowatt hour — the cost is expected to further drop to $100 per kilowatt hour. "I am confident it will come to $100," Gadkari stated, further projecting that this decline would bring EV production costs in line with traditional fuel vehicles.

On the question of whether subsidies should continue, Gadkari acknowledged that it is up to the ministries of finance and heavy industries to decide. "I don't have any problem. I will not oppose that," he said, stressing that while he does not object to incentives, he believes EVs can sustain their current prices without them due to lower production costs.

Despite the slower-than-expected adoption of electric mobility in India, Gadkari expressed optimism about the future of the automotive industry. He predicted that India could become the world’s leading automotive manufacturing hub, citing technological advancements, skilled labour, and the strong global reputation of Indian automakers as driving factors.

Regarding incentives for vehicle scrappage, Gadkari said they may not be necessary, as market forces would likely push automakers to take proactive measures to attract consumers without government intervention.

The minister's comments underscore the growing confidence in the viability of EVs in India's evolving automotive landscape.