Transport Minister Nitin Gadkari has suggested that subsidies for electric vehicles (EVs) are no longer necessary due to falling battery costs and low GST rates. With the GST on petrol and diesel vehicles at 48%, and only 5% on EVs, Gadkari believes additional subsidies are unnecessary.
He expects price parity between EVs and traditional vehicles within two years, driven by decreasing battery costs, which have fallen from $150 to $107-108 per kilowatt-hour. Gadkari highlighted that five companies are now starting lithium-ion battery production, which could further lower costs to $90 per kilowatt-hour, enhancing EV affordability.