Cost of EVs to match petrol, diesel vehicles in about 2 years: Nitin Gadkari

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New Delhi, Sep 9 (IANS) As the adoption of electric vehicles (EVs) increase in the country, the cost of EVs will almost match petrol and diesel vehicles within the next two years, Union Minister for Road Transport and Highways, Nitin Gadkari, said on Monday.

Addressing an event here organised by the Automotive Component Manufacturers Association of India (ACMA), the Minister also urged automobile companies to contribute to road safety initiatives, emphasising that road safety remains a significant concern for the ministry.

“Ten years ago, when I was pushing for electric vehicles, automobile giants in India didn’t take me seriously. Now, they tell me they may have missed the bus," Gadkari told the gathering.

The minister further said that he is not against any additional subsidy or incentive for electric vehicles and if the Finance Ministry and Ministry of Heavy Industries wish to give more EV subsidies, he has no problem.

The new electric vehicles (EV) manufacturing policy aims to attract global players to India but also stress domestic value addition.

According to the ACMA, the EV policy marks another significant step towards accelerating the adoption of cutting-edge technology and fostering innovation in India's automotive sector. The new policy sets the stage for a vibrant future-mobility global manufacturing hub in India.

As per the new policy, a minimum investment of Rs 4,150 crore (about $500 million) is needed to set up manufacturing facilities and production started within three years and reach 25 per cent DVA by three years and 50 per cent DVA within 5 years at the maximum.

The Centre is likely to clear the third Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) scheme to further promote electric vehicle (EV) adoption in two months, according to Minister of Heavy Industries, HD Kumaraswamy.

Last month, the number of EVs registered in FY24 increased significantly by 42.06 per cent as compared to FY23. Credit rating agency ICRA expects about 15 per cent of new car sales to be electric by 2030.