Electric Vehicles (EVs) in India will cost the same as petrol vehicles in the next two years, according to Union Transport Minister Nitin Gadkari.

The government is doing everything it can to boost EV sales. The FAME plan provides a subsidy for certain vehicles. However, even after this, they are considerably more expensive than petrol and diesel vehicles. In this situation, Union Transport and Highways Minister Nitin Gadkari has stated that EV pricing will be comparable to those of petrol and diesel vehicles within the next two years.

“In the country, electric mobility is gaining traction. There is no need for an artificial push. A petrol-based vehicle costs $10 per kilometer, a diesel vehicle costs Rs.7 per km, and an electric vehicle costs Rs.1 per km”, he states.

This is noteworthy since India has set a target of 30 percent EV market penetration for private automobiles, 70 percent for commercial vehicles, 40 percent for buses, and 80 percent for two- and three-wheelers by 2030. In India, only roughly 2-3 e-car versions cost less than Rs .15 lakh at the moment. After taking in the subsidies, the cost of two-wheelers and three-wheelers has about equaled the cost of existing petrol.

Electric vehicles are already subject to a five percent GST, and the cost of lithium-ion batteries is decreasing. Apart from that, the government has already enacted legislation allowing fuel stations to install EV charging stations. In two years, India will have a large number of charging stations.

Lithium batteries are being developed at a lower cost. At the local level, 81 percent of the entire requirement for lithium batteries is met. There is additional research being done on how to make inexpensive batteries available. Nitin Gadkari went on to say that by 2030, we want 30 percent of private automobiles, 70 percent of commercial vehicles, and 40 percent of buses to be electric. The government wants to turn India into an electric vehicle manufacturing hub. Currently, Indian two-wheeler manufacturers such as Bajaj and Hero export 50 percent of their e-vehicles. In the next two years, tens of thousands of charging stations will be erected across the country.

Gadkari also states that a potential trial project to establish an electric highway system on the Delhi-Mumbai Expressway is being planned, which will be powered by the region's plentiful solar energy. Aside from that, the government intends to install charging stations at gas stations.

By 2023, the National Roadways Authority of India (NHAI) plans to add at least 700 electric vehicle charging stations across the country's major highways. These will be dispersed over a distance of 40-60 kilometers.

The central government, according to the Union minister, is also working to ensure that EV charging stations use renewable energy. The government will also unveil the country's first entirely electric tractor soon, according to the minister. This comes only months after Gadkari unveiled the country's first-ever CNG-powered tractor this year.

“Generating electricity from coal has no benefit. Renewable energy sources such as solar, tidal, wind, and biomass are currently the focus of our attention. The domestic EV charging needs can be met with a rooftop solar system. The average retail electricity bill in the US is 7-8 kWh, with backup power from diesel generator sets costing up to Rs.20 per kwh. Solar power, on the other hand, costs less than 2/kwh now. As a result, rooftop solar systems can address both the high cost of electricity and grid reliability”, he explains.