Union Road Transport and Highways Minister Nitin Gadkari has declared that the government no longer needs to subsidize India’s electric vehicle (EV) market. Speaking at the Bloomberg NEF summit in New Delhi, Gadkari pointed out that growing demand and reduced manufacturing costs have made subsidies unnecessary.
Growth in Demand and Lower Costs
Gadkari explained that while the initial costs of electric vehicles were high, increased demand has driven down production expenses. He emphasized that existing benefits, such as a 5% GST on EVs, already offer enough support to make them competitive with petrol and diesel vehicles. “The ask for subsidies isn’t justified anymore,” Gadkari stated, adding that the sector’s growth is strong without additional financial aid.
Focus on Expanding EV Use in Public Transport
While ruling out additional taxes on petrol and diesel vehicles, Gadkari stressed the importance of increasing EV adoption, especially in public transport. He highlighted the potential of electric buses in reducing India’s dependence on fossil fuels and lowering pollution levels.
“Electric buses can play a major role in reducing fossil fuel dependence and pollution levels,” Gadkari noted. The government is also planning to introduce inter-city electric buses to further support the shift towards cleaner energy solutions.
India’s Role in the Global EV Market
Gadkari also discussed India’s rise as the third-largest automobile manufacturer globally. He predicted that with increasing domestic EV production and rising demand, India has the potential to become the largest exporter of lithium-ion batteries within the next five years.
Encouraging Cleaner Vehicles
In conclusion, Gadkari reiterated his long-standing commitment to promoting cleaner vehicles in India. He emphasized that the government’s intention is to encourage domestic automobile companies to focus on EV production, not to make their operations more challenging.
This announcement marks a significant milestone in India’s push towards sustainable transportation, as the country aims to lead the global EV market without reliance on government subsidies.
