Union Minister for Road Transport and Highways, Nitin Gadkari has said that… Declared The government no longer needs to subsidise India's electric vehicle (EV) market. Speaking at the Bloomberg NEF Summit in New Delhi, Gadkari explained that rising demand and falling manufacturing costs have made subsidies unnecessary.
Increase in demand and lower costs
Gadkari pointed out that the initial cost of electric vehicles was high, but growing demand has brought down the production cost. He emphasised that existing benefits, such as 5% GST on EVs, already provide enough support to make them competitive with petrol and diesel vehicles. “Demand for subsidies is no longer justified,” Gadkari said, adding that the growth of the sector is strong without additional financial support.
Focus on increasing the use of EVs in public transport
Ruling out imposing additional taxes on petrol and diesel vehicles, Gadkari emphasised the importance of promoting EV adoption, especially in public transport. He highlighted the potential of electric buses in reducing India's dependence on fossil fuels and reducing pollution levels.
Gadkari said, “Electric buses can play a major role in reducing dependence on fossil fuels and reducing pollution levels.” The government is also planning to introduce inter-city electric buses to further support the shift towards clean 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 domestic EV production and growing demand, India has the potential to become the largest exporter of lithium-ion batteries in the next five years.
Encouraging clean vehicles
Finally, Gadkari reiterated his long-term commitment to promoting clean vehicles in India. He stressed that the government's intention is to encourage domestic automobile companies to focus on EV production, not make their operations more challenging.
The announcement marks a significant milestone in India's efforts towards sustainable transportation, as the country aims to lead the global EV market without reliance on government subsidies.
