Electric vehicles will become affordable in next couple of years, says govt.

The Indian government has announced various schemes and promotions for the faster adoption of EVs in the country. These schemes not only aim at offering benefits to the end-users but also look to incentivize the manufacturers to help set up the supply chain ecosystem.

The result, unfortunately, has been far from desired. Apart from Ola that had a sky-rocketing start to its EV career, all other vehicle brands have experienced steady growth. One of the primary reasons behind the slow adoption of electric vehicles is the upfront cost. Compared to an ICE car, most electric cars are priced premium and there is hardly any zero-emission car that caters to the needs of a typical Indian middle-class household.

Now a statement from the Union transport minister Nitin Gadkari has come as a respite for the consumers who have been reeling under the pressure of increased fuel costs. While speaking on the platform of Sustainability Foundation, Denmark, Gadkari has assured that the costs of electric vehicles will come down in the next couple of years.

Best electric scooters you can buy in India right nowA portable charger that allows you to recharge anywhere

According to Gadkari, the central government’s PLI (Production Linked incentive) scheme will play a major role in setting up the EV manufacturing infrastructure in the country and will eventually bring the overall costs at par with the fuel-powered vehicles. 

He said, “Within two years, the cost of EVs will come down to a level that will be at par with their petrol variants. Already GST is only 5 per cent on EVs and the cost of lithium-ion batteries is also declining.”

Operational costs can be cut down as well

Apart from the costs, addressing the apprehension around the improper charging infrastructure, he assured that the government policies will also address the issue and has allowed petrol pumps to house charging stations. Emphasizing the importance of green energy, he also stressed the need for optimum utilization of renewable energy sources – which will cut down the costs further.

Leading fuel companies like Oil India Limited, BPCL and IOC have already started the process of making their fuel stations EV friendly. BPCL, which has a network of 19,000 fuel stations spread across the country, wants to provide EV chargers on at least 40% of these while IOC is looking to use 10000 fuel stations for the same.

The fact that these fuel filling stations are present on highways, within the city limits and even on the remotest areas, can help expand the charging infrastructure in no time and makes us believe that the Indian government’s vision of becoming net-zero emitter by 2070.

Here is how the FAME II policy revision is speeding up India’s EV adoption

Want to know about the latest happenings in tech? Follow TechRadar India on Twitter, Facebook and Instagram!