Union Minister Nitin Gadkari has made a bold prediction that electric vehicles (EVs) will become more affordable than petrol and diesel vehicles within the next two years.
This statement highlights the government’s commitment to promoting electric mobility and reducing dependence on fossil fuels.
Government Support for EV Adoption
Gadkari emphasized that the government is not opposed to providing subsidies or incentives for EV adoption. However, he stressed the need for the Ministry of Finance and the Ministry of Heavy Industries to allocate funds for these initiatives.
New EV Manufacturing Policy
The government has introduced a new EV manufacturing policy aimed at attracting global players to invest in India’s electric vehicle sector.
Companies will be required to invest at least ₹4150 crore and achieve a domestic value addition (DVA) of 25% within three years. This policy is expected to boost domestic manufacturing and create jobs.
Key Highlights
Rapid Growth- The share of electric vehicles in new car sales is expected to reach 15% by 2030, according to ICRA.
Government Support- The government is providing various incentives, including subsidies and production-linked incentives (PLIs), to encourage EV adoption.
Infrastructure Development- Efforts are being made to expand the charging infrastructure across the country.
Global Investments- The new EV manufacturing policy aims to attract global players to invest in India’s EV sector.
Growing Market for EVs
A report by ICRA predicts that the share of electric vehicles in new car sales could reach 15% by 2030. This indicates a significant increase in consumer demand for EVs in the coming years.
PLI Scheme Benefits and FAME 3 Subsidy
The Production Linked Incentive (PLI) scheme has been instrumental in promoting EV manufacturing in India.
It has created over 35,000 jobs and attracted investments from various companies. The government is also working on releasing the FAME 3 subsidy to further incentivize EV adoption.
Union Minister Nitin Gadkari’s statement about the future of electric vehicles in India is a positive sign for the industry.
With government support, growing consumer demand, and advancements in technology, EVs are poised to become a mainstream choice for Indian motorists.