Electric vehicles will be as cheap as petrol vehicles in the next two years: Nitin Gadkari

As per Gadkari, the prices of electric vehicles would be dropping in the coming year or two due to the production-linked incentives given by the Government of India.

Highlights
  • Union Transport Minister Nitin Gadkari says that electric vehicles would cost as much as petrol vehicles in the next two years.
  • The Indian government will be ensuring the use of renewable energy sources for EV charging stations.
  • Gadkari says that there will be enough charging stations in the next two years.

During a webinar organised by the Sustainability Foundation, Denmark, Union Transport Minister Nitin Gadkari said that electric vehicles would cost as much as petrol vehicles in the next two years. As per Gadkari, the prices of electric vehicles would be dropping in the coming year or two due to the production-linked incentives given by the Government of India. The installation of EV charging points at fuel stations and major highways would also weigh in as a huge factor in the prices of electric vehicles.

As of now, there are only two or three electric car models available under Rs 15 lakhs. However, electric two-wheelers cost as much as their petrol counterparts. The statement could be huge since the Indian government has targeted huge numbers for the future electric vehicles in the market. By 2030, India plans to have 30 per cent EV sales for private cars, 70 per cent for commercial vehicles, 40 per cent for buses and 80 per cent for two and three-wheelers. According to Gadkari, the government is not just focusing on the penetration of EVs in the country. It’s also ensuring that EV charging station gets their energy from renewable sources instead of coal.

Speaking at the webinar, Gadkari said, “Within two years, the cost of EVs will come down to a level that will be at par with their petrol variants. Already GST is only 5 per cent on EVs and the cost of lithium-ion batteries is also declining. Besides, the government has already framed a policy allowing petrol pumps to set up EV charging stations. In two years, there will be a lot of charging points across India as well,”

He further added, “There is no benefit in producing coal-based electricity. Our attention is now on renewable sources such as solar, tidal, wind energy and biomass. Domestic EV charging can be fulfilled through a rooftop solar system. The average retail electricity charge across the country is as high as Rs 7-8 kWh, that of backup power with diesel generator sets is as high as Rs 20/kWh. Meanwhile, solar power is less than Rs 2/kwh today. So, a rooftop solar system can address the twin problem of high electricity cost and grid reliability.”

According to Gadkari, the EV charging through solar panel systems at homes, malls, and offices would make electric vehicles more affordable and adaptable. India is currently the fourth largest country in terms of renewable energy capacity. The union minister said, “Electric mobility is gaining good momentum in the country. There is no artificial push required. The per kilometre cost of petrol-based vehicles is Rs 10, that of diesel is  Rs 7/km, whereas, EVs, it is Rs 1/km.” Gadkari further believes that two years would be enough to solve the country’s charging station problem.

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