Union Minister Nitin Gadkari
Union Minister Nitin Gadkari on Monday said that due to falling prices of lithium-ion batteries, electric vehicles can now maintain their cost even without subsidies. However, it is up to the Finance and Heavy Industries Ministries to decide whether to encourage electric vehicles or not. Speaking at the annual session of the Automotive Component Manufacturers Association (ACMA), Road Transport and Highways Minister Gadkari said that within two years the cost of electric vehicles will be at par with that of petrol and diesel vehicles.
The price is continually falling.
On the question of the need for more incentives to promote electric transport as the adoption rate of electric transport in India is not as expected, Gadkari said that first of all, I am not against any subsidy. I have no problem with it. Explaining his view, he said that at one point the price of lithium-ion batteries was $150 million per kilowatt hour. Now its price is around Rs 10.8-11 crore per kilowatt hour. He said that I am confident that it will touch $100 million. He further said that the manufacturing of electric vehicles has seen growth in terms of volume.
made this prediction
Gadkari said my assessment is that without subsidy, this cost (of electric vehicles) can be maintained because the cost of production is low. He said I think that within two years the cost of petrol and diesel vehicles will be equal to that of electric vehicles because savings are already being made on electric vehicles. On the issue of promotion of electric vehicles, Gadkari said if the Finance Minister and the Heavy Industries Minister want to give subsidies, it will be beneficial for the automobile industry. He said I have no problem. I will not object.
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India to become number 1
The minister also expressed confidence that India can become the world’s number one motor vehicle manufacturing hub and said the future of this industry is very bright. He said I think we should make India the world’s number one automobile manufacturing hub. Gadkari said factors like advancement in technology, availability of affordable talented manpower and good reputation of the Indian automobile industry globally are playing in its favour. On the need for government incentives to speed up scrapping of old vehicles, Gadkari said they would not be needed as market trends would force automobile companies to take their own steps to attract consumers.
