Gadkari Announces Vehicle Scrapping Policy to Slash Auto Component Costs

Union Minister Nitin Gadkari introduced the Vehicle Scrapping Policy, aiming to cut auto component prices by 30%, benefiting consumers with reduced vehicle costs. He highlighted the growth of the EV market due to improved charging infrastructure and dropping prices of lithium-ion batteries, essential for the industry.

Union Minister Nitin Gadkari has revealed that the new Vehicle Scrapping Policy is set to lower the prices of auto components by 30 percent, bringing down vehicle costs for consumers.

Speaking at the Times Drive Auto Awards 2025 in New Delhi, Gadkari emphasized the policy's benefits for the growing electric vehicle market. Enhanced government efforts are improving charging infrastructure nationwide, particularly across urban areas and highways, contributing to increased adoption of electric vehicles.

Gadkari noted the declining cost of lithium-ion batteries, a vital component of EVs, due to large-scale production plans by major companies like Adani Group and Tata. With significant lithium reserves in Jammu and Kashmir, constituting 6 percent of the global reserve, India is poised to boost EV battery production.

(With inputs from agencies.)