India
Electric vehicles may not need subsidies in two years due to falling battery prices: Gadkari | India News – Times of India
NEW DELHI: Road Transport Minister Nitin Gadkari on Monday said electric vehicles may not need government subsidies for the next two years as their prices will be at par with petrol and diesel vehicles due to fall in battery prices. However, he added that he is “not against any incentives” given by finance ministries or heavy industries to spur growth in Electric vehicles.
Speaking at the annual meeting of the automotive components industry ACMA, the minister also said he was not opposed to the sale of petrol and diesel cars – contrary to his previous public statements – but that he wanted consumers to choose a fuel type of their choice.
“I am not against petrol and diesel. Sometimes my statements are unnecessarily misinterpreted,” he said, adding that his only concern with internal combustion engine (ICE) vehicles is the exchequer’s huge fuel import bill, which has risen to nearly Rs 22 lakh crore, and rising pollution in many cities. “Isn’t this a challenge?”
On electric vehicles, the minister said the cost of producing them has come down as battery prices have fallen. “The price of lithium-ion batteries was earlier $150 per kilowatt hour (kWh). Now it has come down to $108-110. I am confident that it will come down further to $100 also because its production has also increased.”
This, he said, means that companies can maintain their costs even without subsidies, because their production costs are coming down. “And I think within two years, the cost of a petrol or diesel vehicle will be the same as an electric car. So they don’t need subsidies, because there is already a saving on electricity as a fuel (for consumers). But still, if the finance minister and the Minister of Heavy Industries wants to give a subsidy that is favorable (to EVs), I have no problem with it. I will not oppose it.”
Electric vehicles currently have a flat VAT rate of 5%, while the tax rate for petrol and diesel vehicles is 28% for smaller vehicles, rising to over 48% for larger vehicles.
When asked if he was concerned about the slowdown in electric vehicle sales, the minister said that this question is best answered by the market. “Leave everything to the market and the choice of people. They are the best judges… survival of the fittest is the law.”
However, the minister said he is concerned about the foreign exchange the treasury is spending on importing fuel. The government is also concerned about the increase in pollution from vehicles. “Forty percent of the air pollution in the country is due to the transport sector. Is that good?”
Transport Minister Nitin Gadkari was clearly shocked by the high number of road deaths in the country and termed the continuation of them a “failure” of the government caused by the lack of respect for rules by motorists and pedestrians.
“This is a dark issue for my ministry. We are trying our best but are not successful. This is one of our failures,” Gadkari said.
Gadkari said that around 1.7 lakh people died in around five lakh road accidents, of which 66% were in the age group of 18-36 years. “Our target was to reduce the number of accidents by 50%. However, we feel that there is a problem with the society. There is no fear or respect for law.”
Speaking at the annual meeting of the automotive components industry ACMA, the minister also said he was not opposed to the sale of petrol and diesel cars – contrary to his previous public statements – but that he wanted consumers to choose a fuel type of their choice.
“I am not against petrol and diesel. Sometimes my statements are unnecessarily misinterpreted,” he said, adding that his only concern with internal combustion engine (ICE) vehicles is the exchequer’s huge fuel import bill, which has risen to nearly Rs 22 lakh crore, and rising pollution in many cities. “Isn’t this a challenge?”
On electric vehicles, the minister said the cost of producing them has come down as battery prices have fallen. “The price of lithium-ion batteries was earlier $150 per kilowatt hour (kWh). Now it has come down to $108-110. I am confident that it will come down further to $100 also because its production has also increased.”
This, he said, means that companies can maintain their costs even without subsidies, because their production costs are coming down. “And I think within two years, the cost of a petrol or diesel vehicle will be the same as an electric car. So they don’t need subsidies, because there is already a saving on electricity as a fuel (for consumers). But still, if the finance minister and the Minister of Heavy Industries wants to give a subsidy that is favorable (to EVs), I have no problem with it. I will not oppose it.”
Electric vehicles currently have a flat VAT rate of 5%, while the tax rate for petrol and diesel vehicles is 28% for smaller vehicles, rising to over 48% for larger vehicles.
When asked if he was concerned about the slowdown in electric vehicle sales, the minister said that this question is best answered by the market. “Leave everything to the market and the choice of people. They are the best judges… survival of the fittest is the law.”
However, the minister said he is concerned about the foreign exchange the treasury is spending on importing fuel. The government is also concerned about the increase in pollution from vehicles. “Forty percent of the air pollution in the country is due to the transport sector. Is that good?”
Road safety efforts a failure: Gadkari
Transport Minister Nitin Gadkari was clearly shocked by the high number of road deaths in the country and termed the continuation of them a “failure” of the government caused by the lack of respect for rules by motorists and pedestrians.
“This is a dark issue for my ministry. We are trying our best but are not successful. This is one of our failures,” Gadkari said.
Gadkari said that around 1.7 lakh people died in around five lakh road accidents, of which 66% were in the age group of 18-36 years. “Our target was to reduce the number of accidents by 50%. However, we feel that there is a problem with the society. There is no fear or respect for law.”
