2024-09-10 02:48:25
New Delhi: In the next 2-3 years, the prices of electric vehicles (EV) will be as high as petrol-diesel vehicles. Union Minister Nitin Gadkari has made this estimate. He said that there will be no need for subsidy for this. Gadkari said this in the 64th annual session of the Automotive Component Manufacturers Association (ACMA). According to the Times of India (TOI) report, Gadkari emphasized the government’s efforts to promote cheap and less polluting fuel. He also set a target of making India the world’s number one auto manufacturing hub. Recently, India has become the third largest auto manufacturer in the world. The country is now behind only America and China. Union Road Transport and Highways Minister Nitin Gadkari said that the GST rate on electric vehicles is lower (5%) than that on petrol-diesel vehicles (28%). He said, ‘Consumers are now choosing electric and GNG vehicles themselves. I don’t think we need to give more subsidy for EV.’
Manufacturing cost will reduce by 30%
According to the report, Gadkari said that the NDA government’s scrappage policy is expected to reduce manufacturing costs by up to 30% by recycling materials such as aluminium, copper, steel and rubber. He said India benefits from low labour costs, high-quality products and fast-moving technologies.
India introduced the scrappage policy for old and unsafe vehicles in 2021. On March 18, 2021, Nitin Gadkari gave detailed information about this scheme. The aim of the scrappage policy is to remove vehicles older than 15-20 years and promote the purchase of new vehicles. It aims to organize the scattered and disorganized vehicle scrapping methods across India.
What does the scrappage policy say?
As per the policy, commercial vehicles older than 15 years and passenger vehicles older than 20 years will have to undergo fitness and emission tests. The policy checks brake quality, engine performance and several other factors to decide whether the vehicle is scrappable or not.
Gadkari said India must reduce its dependence on fossil fuels. However, he also clarified that he is not against diesel and petrol. He stressed the importance of switching to alternative, affordable and pollution-free solutions such as electric vehicles and biofuels like ethanol.
India is one of the largest oil importers in the world. In 2021-22, India imported 212.4 million metric tonnes (MMT) of crude oil.