Speaking on the annual session of auto element trade physique Acma, Gadkari additionally mentioned that he’s not averse to the sale of petrol and diesel vehicles – a lot in opposition to his public statements earlier – however slightly needs shoppers to decide on a gas of their selection.
“I am not against petrol and diesel. Sometimes, my statements are unnecessarily misinterpreted,” he mentioned, whereas including that his solely concern with inside combustion engine (ICE) autos is across the exchequer’s large gas import invoice, which has ballooned to just about Rs 22 lakh crore and rising air pollution throughout many cities. “Is this not a challenge? 40% of air pollution in the country is due to the transport sector. Is it good?”
On electrical autos, the minister mentioned the associated fee for manufacturing them has been coming down because the battery costs have been falling. “The price of lithium-ion battery was $150 per kilowatt-hour (KWH) earlier. Now, it has come down to $108-110. I am confident this will further come down to $100, because their manufacturing has increased.”
This, he mentioned, will imply firms can preserve their prices even with out a subsidy as their price of manufacturing is coming down. “And, I feel within two years, the cost of a petrol or a diesel vehicle will be the same as an EV. So, they don’t need subsidy as already there is a saving on electric as a fuel (for consumers).
Electric vehicles currently attract a flat GST rate of 5%, while on petrol and diesel vehicles the tax rate is 28% for smaller vehicles, and goes up to over 48% for larger vehicles.
When asked whether he is concerned about slowdown in sale of electric vehicles, he said this question will be best answered by the market. “Leave all the pieces to the market and the selection of individuals. They are one of the best judges… survival of fittest is the regulation.”
