EVs can maintain cost without subsidies but won't oppose incentives: Nitin Gadkari

With falling lithium-ion battery prices, electric vehicles can now maintain cost without subsidies but it is for finance and heavy industries ministries to decide if incentives need to be given to electric vehicles, Union Minister Nitin Gkari said on Monday.

Speaking at annual session of Automotive Components Manufacturers Association (ACMA), Gkari, Minister for Ro Transport and Highways, said within two years, cost of EVs will be same with ir petrol and diesel counterparts.

"First of all, I am not against any subsidies. I don't have any problem," Gkari said when asked if more incentives were needed to accelerate electric mobility as option in India has not been as expected.

Elaborating his views, he said at one point price of lithium ion battery was $150 per kilowatt hour. Now it is something $108 to 110 per kilowatt hour.

"I am confident it will come to $100," he asserted.

Moreover, he said manufacturing of EVs has witnessed an increase in volume terms.

"My assessment was that without subsidy, you can maintain that cost (of EVs) because cost of production is less," Gkari said.

He furr said, "I feel that within two years, cost of petrol vehicle and diesel vehicle will be same as electric, because alrey re is savings on electric vehicles."

On issue of extending incentives to EVs, Gkari said still if finance minister and heavy industries minister, if y want to give subsidies it will be beneficial for automotive industry.

"I don't have any problem. I will not oppose that," he asserted.

minister also expressed confidence that India can become number one automotive manufacturing hub in world saying that future of this industry is very bright.

"My feeling is that we should make India as number one automobile manufacturing hub in world," he said, ding factors such as vancement in technology, availability of affordable talented workforce and Indian auto industry's good reputation globally worked in its favour.

Asked if government incentives were needed to accelerate old vehicle scrappage, Gkari said it would not be required as market forces will make auto companies take steps on ir own to woo consumers.