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Union Minister Nitin Gadkari (File Photo: PTI)
Days after saying that there is no need for subsidies to achieve greater penetration of electric vehicles (EVs), Union minister for road transport and highways Nitin Gadkari on Monday clarified that the view is his own but any official call on EV subsidies is not one that he can make.
“I am not against any incentives. The heavy industries minister is responsible for this, and if he wants to give more incentives on EVs, I do not have any problem. My argument is that when EVs started, the price of a lithium-ion battery was $150 per kilowatt per hour. Now, it is around $108-110 and I’m confident that it will come down to $100. On the basis of that, my assessment was that even without a subsidy, one can maintain their costs because the production expenses have come down,” the minister said at the 64th Annual Session of ACMA.
“Within two years, the cost of an EV will be the same as petrol and diesel vehicles. They don’t need subsidies as there already is an advantage with electric as a fuel. Still, if the finance minister and heavy industries minister feel that more subsidies are beneficial, I do not oppose that,” he added.
EV penetration in the country is around 2 per cent for passenger vehicles and 6 per cent across vehicle classes.
Gadkari, who has also been a staunch critic of the fossil fuel economy, clarified his stance on the issue as well, but he maintained that growing fossil fuel consumption is a problem for him.
“Firstly, I’m not against petrol, diesel, or fossil fuels; my statements are sometimes misinterpreted. But we have a Rs 22 trillion bill for imports for fossil fuels—is that not a challenge for the country? 40 per cent of the air pollution in the country is due to the transport sector, and I am the minister who is responsible for that. Is that good?” the minister said.
“I am not against anybody, but there is economic viability and a good market (in biofuels). Then why do you insist on petrol and diesel?” he added.
More Scrapping Discounts
On a question about the extent of discounts offered on new vehicles by automobile sellers on scrapping of old vehicles, the minister said that the industry can do more.
“I don’t need to make any request to anybody, because everyone wants to capture the market and there is competition. For that, there is no option—they have to increase the discount whether they like it or not. These are intelligent people, they understand business—which is why they will increase their discounts,” he said.
He compared the present scrappage scenario with the initial days of airlines, where competing airlines introduced major discounts which ultimately benefited the consumer.
Recently, the minister had said that manufacturers have agreed to offer discounts of 1.5-3 per cent or up to Rs 25,000 on new vehicle purchases against scrapped old vehicles.
First Published: Sep 09 2024 | 7:35 PM IST
