Business Business : Union Minister Nitin Gadkari on Monday said electric vehicles can now maintain their cost even without subsidies due to falling prices of lithium-ion batteries. However, the decision on whether to promote electric vehicles or not depends on the finance and heavy industries ministries. Addressing the annual meeting of the Automotive Component Manufacturers Association (ACMA), Road Transport and Highways Minister Gadkari said within two years the price of electric vehicles will be at par with petrol and diesel cars.
Asked about the need for more incentives to promote electric vehicles as the adoption rate of electric vehicles in India is not good, Gadkari said, “First of all, I am not against any subsidy. I have no problem.” Explaining his point, he said that the cost of lithium-ion batteries was once $150 million per kilowatt-hour. Currently, the price is between Rs 10.8 crore and Rs 11 crore per kilowatt-hour. “I’m confident it will reach $100 million,” he said, adding that the production of electric vehicles has increased in volume.
“My assessment is that you can maintain this cost (of electric vehicles) without subsidy because the production cost is low,” Gadkari said. “I think in two years the price of diesel cars will become equal to the price of electric cars,” he said. “Because there is already savings from electric vehicles.” Talking about promoting electric vehicles, Gadkari said that if the Finance Minister and the Heavy Industries Minister want to give subsidy, then this engine will be beneficial for the automobile industry. He said, “I have no problem. I will not oppose it.” The minister also expressed confidence that India can become a leading automobile manufacturing hub in the world and said the future of the industry is very bright.
