Won’t oppose incentives to e-vehicles, says Gadkari

With falling lithium-ion battery prices, electric vehicles can now maintain cost without subsidies but it is for the finance and heavy industries ministries to decide if incentives need to be given to electric vehicles, Union Minister Nitin Gadkari said on Monday.

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Speaking at the annual session of Automotive Components Manufacturers Association (ACMA), Gadkari, the Minister for Road Transport and Highways, said within two years, the cost of EVs will be the same with their petrol and diesel counterparts.

“First of all, I am not against any subsidies. I don’t have any problem,” Gadkari said when asked if more incentives were needed to accelerate electric mobility as adoption in India has not been as expected.

Elaborating his views, he said at one point the price of the lithium ion battery was USD 150 per kilowatt hour. Now it is something USD 108 to 110 per kilowatt hour. “I am confident it will come to USD 100,” he asserted. Moreover, he said the manufacturing of EVs has witnessed an increase in volume terms.

“My assessment was that without subsidy, you can maintain that cost (of EVs) because the cost of production is less,” Gadkari said.

He further said, “I feel that within two years, the cost of the petrol vehicle and the diesel vehicle will be the same as electric.”

On incentives to EVs, HE said still if the finance minister and the heavy industries minister, if they want to give subsidies it will be beneficial for the automotive industry. “I don’t have any problem. I will not oppose that,” he asserted.