No More Subsidies for Electric Vehicles, Says Gadkari

Union Minister Nitin Gadkari declared that subsidies for electric vehicles are no longer needed as consumers choose electric and CNG vehicles on their own. He highlighted the drop in production costs due to increased demand. Gadkari noted the lower GST rates on electric vehicles compared to petrol and diesel vehicles.

Union Minister Nitin Gadkari asserted on Thursday that there is no longer a necessity to subsidize the electric vehicle (EV) market, as consumers are independently opting for EVs or CNG vehicles.

Speaking at the BNEF Summit, Gadkari emphasized that while the initial manufacturing costs for EVs were high, the surge in demand has subsequently reduced production costs, rendering subsidies superfluous.

Highlighting the lower GST rates on electric vehicles compared to petrol and diesel vehicles, Gadkari reiterated his stance against further subsidies. At present, a GST of 28% is levied on vehicles powered by internal combustion engines, including hybrids, as opposed to 5% on electric vehicles.

(With inputs from agencies.)