Transport Minister Nitin Gadkari has stated that when battery prices decline, the cost of operating an EV is anticipated to be comparable to that of a fossil fuel vehicle. As a result of the battery price drop, the minister stated that travellers will save 30% on fares and that pollution and imports will be reduced as well.
According to Gadkari, the price of lithium-ion batteries has dropped from $150 per kilowatt-hour to $112. Since its launch in India, the category has grown by 350%. “When this comes down to $100, the (operating) cost will be the same as that of petrol and diesel vehicles,” added the union minister. “If you spend Rs 20,000–25,000 on petrol vehicles in a month, you will incur only Rs 2,000 on electric vehicles.” Within the next five years, Gadkari intends to have electric buses operating in every Indian city, including long-distance routes like Delhi-Shimla, Delhi-Chandigarh, and Pune-Mumbai.
EV Manufacturing Builds Up Momentum
The nation’s EV manufacturing industry has picked up steam, with output increasing across all segments. There are 400 producers of electric scooters in India. Companies are producing 60-kilometer-range electric scooters, according to Gadkari. A new EV strategy announced by the central government is anticipated to free up tax space for international manufacturers such as Tesla Inc.
Global electric vehicle manufacturers may be required to pay a 15% levy on imported vehicles under the new policy if they invest $500 million in regional production facilities. There is currently a 70–100% import duty, according to a government gazette.
