Nitin Gadkari: EVs would cost the same as ICE vehicles in two years

9 Sep 2024 , 01:22 PM

Transport Minister Nitin Gadkari stated at the 64th ACMA annual session that within two years, the cost of petrol and diesel automobiles will be the same as that of an electric vehicle (EV).

The minister also stated that he has no objections to the Finance Minister providing subsidies for EVs, despite previously suggesting that subsidies to EV makers are no longer required because production costs have decreased and consumers are now choosing electric vehicles (EVs) or CNG vehicles on their own.

In India, EVs had a 6.3% market share last year, up 50% from the previous year.

In an interview with ET Now, Bhavish Aggarwal, CMD of Ola Electric Mobility, had a similar stance, stating that EVs in many categories will soon be on par with or cheaper than ICE (internal combustion engine) products.

Batteries account for roughly 40% of an EV’s pricing.

Even a survey by the Rocky Mountain Institute (RMI) last year projected that electric vehicles might reach price parity with fossil-fuel models in Europe in 2024 and the US market in 2026.

The analysis anticipated that battery costs would be cut in half this decade, from $151 per kilowatt hour (kWh) in 2022 to between $60 and $90 per kWh, making EVs “for the first time as cheap to buy as petrol cars in every market by 2030, as well as cheaper to run.”

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