According to Bloomberg News, on September 5, Indian Road Transport and Highways Minister Nitin Gadkari said that since the production cost of electric vehicles has dropped and consumers now choose electric vehicles or compressed natural gas (CNG) vehicles, there is no need to provide subsidies to electric vehicle manufacturers.
Photo source: India’s Ministry of Roads, Transport and Highways,Nitin Gadkari said at the annual Bloomberg New Energy Finance (BNEF) Summit in New Delhi, India: “Initially, the production cost of electric vehicles was high, but with the increase in demand for electric vehicles and the decline in battery costs, the production cost of electric vehicles has declined, and their competitiveness has become increasingly competitive, and sales are also increasing.
Therefore, India does not need to provide further subsidies for electric vehicles.
“, Nitin Gadkari said that the cost of lithium-ion batteries has now dropped to US$107 per kilowatt-hour and is expected to drop to US$90 per kilowatt-hour.
This price will eliminate the need for India to subsidize electric vehicles and also shows that the lithium-ion battery market has matured.
Nitin Gadkari added that India only imposes a 5% Goods and Services Tax (GST) on electric vehicles, while a GST of up to 48% is levied on diesel and gasoline vehicles.
“Given the size of India’s economy and energy needs, a comprehensive shift from fossil fuels to alternative fuels will be a gradual process.
At the same time, India will not increase the tax rate on gasoline and diesel vehicles.
“, Prior to Nitin Gadkari’s remarks, Indian media reported on September 4 that quoted Indian Minister of Heavy Industry HD Kumaraswamy as saying that the Indian government would soon introduce new incentives to promote the popularization of electric vehicles.
Nitin Gadkari’s words are obviously a response to the report.
, According to the International Energy Agency’s Global Electric Vehicle Outlook report, in the Indian market, due to the Indian government’s subsidy policy, the number of electric vehicle registrations increased by 70% year-on-year.
In contrast, the growth rate of total vehicle sales was less than 10%.
Return to the first electric network home page>,.
