Nitin Gadkari, the Union Minister of Road Transport and Highways, recently remarked that the Indian electric vehicle market does not require subsidies from the government from now on. The UN minister said that EVs powered by alternative fuels like CNG are in high demand among customers in India without being backed by subsidies. Nitin Gadkari added that the cost of batteries has now been reduced and there are low GST rates applied to EVs in India.
These remarks by the UN minister were made on September 5, 2024, during a summit. He further said that sales of electric vehicles powered by alternative fuels will gradually increase in the coming time. By 2030, the Centre is aiming to acquire 30 percent of sales from EVs and reduce pollution as well.
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In a bid to increase electric vehicle sales in the country, the Centre launched the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme in India, under which manufacturers received subsidies on their vehicles. In India, sales of two-wheeler electric models have increased by just 5% since 2018. In contrast, EV sales in the PV market have increased even less, contributing only 2% of the total sales.
Gadkari highlighted that automakers are now benefiting from declining lithium-ion battery costs and lower production costs. Customers are also favoring CNG and EVs, which points out a growing market. As the FAME scheme is entering its third phase in the country, the government is all set to add new guidelines for the development of the fast-growing EV industry. However, specific details have not been revealed yet. The overarching goal is expected to finally create a competitive and sustainable EV market in India.
