"EVs don't need subsidies" says Nitin Gadkari
"My personal belief is now we don't need too much subsidies. The GST (goods and services tax) on petrol, and diesel vehicles is 48 percent. The GST on an electric vehicle is only 5 percent. Still, after getting 5 percent GST, if someone is expecting subsidy from the government, my honest opinion is now we don't need subsidies," said the Minister of Road Transport & Highways, Nitin Gadkari at the Green Bharat Summit hosted by Network 18 in association with Ola Electric.
While subsidies on electric vehicles have been available for the last few years, the Union Minister believes they are no longer necessary. Considering that the GST on an EV is the bare minimum, asking for a subsidy on top of that now would be asking for too much.
The Minister for Road Transport and Highways, stated on Friday that he believes the Indian car sector would surpass all others globally in five years and that electric vehicles will be the main force behind this expansion.
Additionally, Gadkari stated that during the next two years, the price of EVs is anticipated to equal that of gasoline and diesel cars. In India, there are already 30 lakh registered electric cars, with two-wheelers accounting for 56 percent of total sales. According to the ministry, EV sales increased by 45 percent in 2023â€"2024.
"Today, the size of the industry has grown to Rs 22 lakh crore and we have just surpassed Japan. as the third largest auto industry in the world. USA tops the list with the size of the industry estimated at Rs 78 lakh crore followed by China at Rs 47 lakh crore. I am confident that in 5 years, we will be number one in the world and e-vehicles will be the primary factor driving the growth of the industry," Gadkari said.
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