EV makers no longer need to be subsidised by govt: Gadkari

Union Minister Nitin Gadkari on Thursday said there is no need to provide subsidy to electric vehicle makers as consumers are now choosing EVs or CNG vehicles on their own.

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Addressing BNEF Summit, Gadkari said initially costs of manufacturing electric vehicles were high, but as demand has increased, production costs have dropped, making further 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 Road Transport and Highways Minister said.

The minister pointed out that GST on electric vehicle is lower than petrol and diesel vehicles. “In my opinion, manufacturing of electric vehicles no longer needs to be subsidised by the government.

“The ask for subsidies isn’t justified anymore,” he said.

At present, 28 per cent GST is levied on vehicles powered by internal combustion engines, including hybrids, and 5 per cent on electric vehicles.