New Delhi : The price of electric vehicles (EVs) could be comparable with petrol and diesel-powered vehicles in the next two years on the back of declining cost of lithium ion batteries, technological breakthroughs and growing localisation of components, Union road transport and highways minister Nitin Gadkari said.
“I am confident that within one year or maximum upto two years the cost of petrol vehicles and e-vehicles will be same,” he said while speaking at webinar organised by The Sustainability Foundation, Denmark.
The minister said that he was personally pushing for research on alternative battery chemistries such as sodium ion, zinc ion and aluminium ion which will further reduce the cost of EVs in India.
“Mass demand for EVs, indigenous battery technology and localisation of EV parts will lead to the same capital cost in comparison to petrol and diesel versions due to economies of scale,” Gadkari said.
He noted that the central and state governments are promoting and supporting EV eco-system in the country through favourable policies, incentives, subsidies, tax exemption and loan facilities on both supply both supply and demand sides.
“Already, GST is only 5% on the electric vehicles as compared to petroleum vehicles it is coming to 48%,” he said.
Gadkari stated that a lot many battery chemistries are being developed by research institutes and start-ups. Further, 81% of the lithium battery requirements are being met with local production and all the factors together would eventually lead to the reduced cost of ownership for electric vehicles in coming years.
On charging infrastructure, the minister said that within two years there would be enough charging stations in the country and would no longer be a problem for EVs.