EVs Buying Costs To Be At Par With Petrol Vehicles In A Year, Says Nitin Gadkari

The Union Minister for Road Transport and Highways, Nitin Gadkari has expressed the hope in an event that the prices of all electric vehicles (EVs) are going to be equal to the cost of petrol vehicles in India in the coming one year. The premise behind the comment from the Union Minister is that, as he explains, the central government is promoting green fuels in a big way. The cost issue is a serious one,especially in four wheelers where no options below Rs 10 lacs exist currently. Even options that do exist offer low range as compared to their ICE counterparts, making a decision in their favour very difficult for most prospective buyers.

Nitin Gadkari further held that the government is promoting ethanol in place of petrol and diesel to reduce the carbon emission in the transport sector. Ethanol is produced from crop residue and the government recently brought forward the target for 20% blending to 2025. 10% levels of blending have already been achieved this year.

He said in his address, “I am trying…within one year, the cost of electric vehicles will be equivalent to the cost of petrol vehicles in the country and we will save money spent on fossil fuels.” He also added that waterways help promote cheaper mode of transportation in comparison with road transportation and it will be developed in a big way.

The growth of green transportation is quite strong in India, especially in the Electric Vehicles. According to the data released by the Federation of Automobile Dealers Associations (FADA), electric vehicle retail sales in India saw over a three-fold jump last fiscal. FADA says that total electric vehicle retail sales came up to 429,217 units in 2021-22 fiscal, which is three times more than 134,821 units sold in 2020-21.

A Robust Future of Indian EV Sector

Electric vehicles still constitute just 1 per cent of the new purchases in India but the share is rising. The EV market, according to India Energy Storage Alliance (IESA), that until 2026, will grow at a CAGR of 36 per cent in the country until 2026. The Indian Government has set a target of EV making up 30% of new sales of cars and two-wheelers by 2030. Hence, programmes like National Electric Mobility Mission Plan (NEMMP) and Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) are launched for faster adoption of electric vehicles in India.

In March also, Nitin Gadkari had held that there will be dramatic reduction in the prices of electric vehicles in the coming two years. He also informed that even the prices of lithium-ion batteries are coming down.