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If you are also thinking of buying an electric car or vehicle, then this news might come in handy for you. In fact, Road Transport Minister Nitin Gadkari has given an important update on the subsidy on electric vehicles. After Nitin Gadkari’s announcement, the question that arises in people’s minds is whether the subsidy on electric vehicles will end in India. Let us know what the deal is…
India’s Road Transport and Highways Minister Nitin Gadkari on Thursday said the country’s electric vehicle (EV) market no longer needs government subsidies. He said due to rising demand and falling production costs, there is no need for subsidies anymore.
What did Nitin Gadkari say?
Speaking at the Bloomberg NEF Summit, Gadkari said: I believe that EV manufacturing no longer needs government subsidies. He said the initial cost was high, but as demand grew, production costs came down, making further subsidies unnecessary. Gadkari also pointed out that EVs already enjoy favourable taxation, with GST being just 5%, which provides a significant advantage compared to petrol and diesel vehicles. He said the demand for subsidy is no longer justified.
Why did you talk about subsidy?
Discussing the widespread shift towards clean energy, Gadkari said India’s dependence on petrol and diesel is a major concern. However, he rejected the possibility of imposing additional taxes on petrol and diesel vehicles and highlighted the expansion of electric vehicles in public transport. He said electric buses can play a major role in reducing dependence on petrol and diesel and reducing pollution levels.
Due to the subsidy given by the government to EV companies, buyers also get some benefits. If the subsidy ends, these companies may shift the burden to the customers. The government is offering discounts to EV customers at the time of purchasing the vehicle. If the companies stop getting discounts, there is a possibility that the companies may also stop these discounts for the customers. Currently, up to 40 per cent discount is being offered on two-wheelers. Similarly, a rebate of Rs 10,000 per kilowatt is being given to three-wheelers and four-wheelers.
