Gadkari: EVs may not need subsidies in 2 years

Nitin Gadkari, the road transport minister, indicated that electric vehicles could be subsidy-free within two years as their prices are expected to equal those of petrol and diesel vehicles due to declining battery costs. He emphasized consumer choice and highlighted issues related to fuel import bills and pollution from internal combustion engine vehicles.

NEW DELHI: Road transport minister Nitin Gadkari on Monday said electric vehicles may not need govt subsidies in next two years as their prices will be on par with petrol and diesel vehicles due to fall in battery prices. However, the minister added that he is "not against any incentives" offered by the ministries of finance or heavy industries to support the growth of EVs . Speaking at the annual session of auto component industry body Acma , Gadkari also said that he is not averse to the sale of petrol and diesel cars - much against his public statements earlier - but rather wants consumers to choose a fuel of their choice.

"I am not against petrol and diesel. Sometimes, my statements are unnecessarily misinterpreted," he said, while adding that his only concern with internal combustion engine (ICE) vehicles is around the exchequer's huge fuel import bill, which has ballooned to nearly Rs 22 lakh crore and growing pollution across many cities. "Is this not a challenge? 40% of air pollution in the country is due to the transport sector.

Is it good?" On electric vehicles, the minister said the cost for manufacturing them has been coming down as the battery prices have been falling. "The price of lithium-ion battery was $150 per kilowatt-hour (KWH) earlier. Now, it has come down to $108-110.

I am confident this will further come down to $100, because their manufacturing has increased." This, he said, will mean companies can maintain their costs even without a subsidy as their cost of production is coming down. "And, I feel within two years, the cost of a petrol or a diesel vehicle will be the same as an EV.

So, they don't need subsidy as already there is a saving on electric as a fuel (for consumers). Electric vehicles currently attract a flat GST rate of 5%, while on petrol and diesel vehicles the tax rate is 28% for smaller vehicles, and goes up to over 48% for larger vehicles. When asked whether he is concerned about slowdown in sale of electric vehicles, he said this question will be best answered by the market.

"Leave everything to the market and the choice of people. They are the best judges..

. survival of fittest is the law.".