EV Subsidies To End? Here's What Union Minister Nitin Gadkari Said

Union Road Transport and Highways Minister Nitin Gadkari has said that subsidies for electric vehicle manufacturers are no longer required as production costs have decreased and consumers are now opting for electric vehicles (EVs) or CNG vehicles on their own.

Speaking at an event on Thursday (5 September), Gadkari said that while the initial manufacturing costs for electric vehicles were high, growing demand has led to reduced production expenses, making the need for continued subsidies unnecessary.

"Consumers are now choosing electric and compressed natural gas (CNG) vehicles on their own and I do not think we need to provide much subsidy for electric vehicles," the minister said.

He also pointed out the lower rate of GST on electric vehicles (5 per cent) compared to petrol and diesel vehicles (28 per cent).

"In my opinion, manufacturing of electric vehicles no longer needs to be subsidised by the government," he said, Economic Times reported.

The minister added that the demand for subsidies is not justified anymore.

Gadkari also ruled out imposing extra taxes on petrol and diesel vehicles, saying that the transition from fossil fuels to alternative fuels will be a gradual shift due to India's vast economy and energy demands.

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