Electric Car Prices to Equal Petrol Cars in 6 Months: Nitin Gadkari

While speaking at the 32nd Convergence India and 10th Smart Cities India Expo, Nitin Gadkari, the Union Minister for Road, Transport and Highways, Government of India, confidently stated that the prices of electric vehicles in the country will be equal to those of petrol vehicles within the next six months.

“Within six months, the cost of electric vehicles will be equivalent to the cost of petrol vehicles,” Nitin Gadkari asserted.

Additionally, he also revealed the government’s policy, which focuses on import substitutes, cost-effectiveness, pollution and indigenous production.

The Union Minister further announced that the construction work of the 212-km long Delhi to Dehradun expressway will be complete soon and will be open to the public within the next three months.

“By making good roads, we can reduce our logistics cost,” he added.

He also highlighted the importance of improving the infrastructure sector in the country.

“To make India the third-largest economy, the country needs to improve its infrastructure sector,” he further emphasized.

Indian Government’s EV Initiatives

The government is also actively working on developing a strong EV charging infrastructure in Tier 2 and 3 cities in the country. Additionally, the union is planning to roll out a transformative EV policy, which includes a substantial reduction in import duties on premium electric vehicles, from the present 110% to just 15%.

This initiative is expected to attract major global EV manufacturers, including Tesla and Vinfast, driving investment and boosting the country’s electric mobility objectives.

At present, EVs are much more expensive than traditional ICE cars because their battery packs are being imported from China and Korea, rather than being locally produced. The battery accounts for almost 70% of the electric vehicle’s total cost. Thus, if we begin domestic production of lithium-ion batteries, the prices of EVs would reduce significantly.

The most affordable electric car available in the country is the MG Comet, with a decent range of 230 kms and a compact cabin, available at a starting price of Rs 4.99 lakh (ex-showroom).

However, the customers need to pay an additional Rs 2.50 per km for the Battery-as-a-Service (BaaS) package.

There are several other electric vehicles available in the country that offer great driving range and cabin space. However, their high prices make them costly for the common man.

Thus, developing lithium-ion battery packs locally can help address this issue as well as reduce the prices to be equivalent to ICE vehicles.

Nitin Gadkari is a firm believer in Electric Vehicles

Meanwhile, this isn’t the first time Nitin Gadkari has projected a reduction in the cost of electric vehicles. During a public address in Nagpur, he asserted that by 2025, the cost of electric vehicles is expected to be equivalent to that of ICE vehicles, driven by advancements in domestic production and battery technology.

He also highlighted the importance of lower operational costs of electric vehicles.

Gadkari has always emphasized that EVs have significantly lower operational costs than petrol or diesel vehicles. He repeatedly highlights that running an EV costs around Rs 1 per km, whereas petrol or diesel cars cost approximately Rs 5-7 per km.

He firmly believes and has been a leading advocate that while electric vehicles may have a higher initial price, the long-term benefits and savings make them a more cost-effective option.