EV prices to reduce to petrol, diesel car levels: Nitin Gadkari

India has emerged as a global powerhouse in the automotive sector, having surpassed Japan to become the third-largest auto manufacturer in the world, trailing only the USA and China. The country's automotive industry is growing at an impressive rate of 9 percent, with the potential to increase to 10 percent in the next 2-3 years. At the 64th annual session of Automotive Component Manufacturers Association (ACMA), Union Minister Nitin Gadkari outlined a vision to make India the number one auto manufacturing hub globally.

Gadkari believes that within two years, the cost of EVs will be on par with petrol vehicles, eliminating the need for subsidies. He highlighted the government's efforts to promote cost-saving fuel technologies and less polluting alternatives.

Scrappage policies will result in lower costs:

The minister further said that India's competitive advantage lies in its low labour costs, high-quality products, and rapidly advancing technologies. The government's focus on scrapping policies is expected to reduce manufacturing costs by up to 30 percent by recycling materials like aluminum, copper, steel, and rubber.

He mentioned that consumers could receive up to a 3 percent discount on new vehicles when they scrap their old ones. This policy is expected to lower the cost of new vehicles and reduce manufacturing expenses. Gadkari urged the OEMs to enhance the quality and efficiency of their products, besides also providing enhances discounts. He believes that eventually it will result in enhanced sales.

Reducing dependency on fossil fuels:

Gadkari clarified his stance on petrol and diesel as he said "I'm not against diesel and petrol," but India must reduce its dependence on fossil fuel imports, which currently stand at Rs 22 lakh crore. He stressed the importance of transitioning to alternative, cost-effective, and pollution-free solutions, such as electric vehicles (EVs) and biofuels like ethanol.

He used the example of the recently-launched Bajaj CNG bike. Gadkari pointed out that the cost of running a CNG bike is just Rs 1 per km compared to over Rs 2 for a petrol bike. Furthermore, farmers are benefiting from ethanol production, with corn prices doubling due to increased demand for ethanol as a biofuel.