Union Transport Minister Nitin Gadkari, during a webinar organized by the Sustainability Foundation, Denmark, said that electric vehicles will cost as much as petrol vehicles in the next two years. This will be so thanks to the production-linked incentives provided by the Indian government. The installation of EV charging ports at fuel stations and major highways will also be a major contributor.

ola electric scooter

The statement is quite significant considering EVs are yet to pick up pace in terms of sales. A recent report had shown EVs only covered 1.3% of vehicle sales in India in FY 2020-21. But a cost reduction in new energy vehicles paired with a boost in production should increase their sale significantly.

India had already planned to have 30 percent EV sales for private cars, 70 percent for commercial vehicles, 40 percent for buses, and 80 percent for two and three-wheelers. Gadkari now says that the government isn’t only focusing on the penetration of EVs in the country, but also ensuring that EV charging stations get their energy from renewable sources instead of coal (via 91mobiles).

“Within two years, the cost of EVs will come down to a level that will be at par with their petrol variants. Already GST is only 5 percent on EVs and the cost of lithium-ion batteries is also declining,” said Gadkari. “Besides, the government has already framed a policy allowing petrol pumps to set up EV charging stations. In two years, there will be a lot of charging points across India as well.”

Gadkari further added saying that there’s no benefit in producing coal-based electricity and that their full attention is now on renewable sources such as solar, tidal, wind energy, and biomass.

He also believes that EV charging through solar panel systems at homes, malls, and offices would make electric vehicles more affordable and adaptable. India is after all the fourth largest country in terms of renewable energy capacity.

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