Union Minister Nitin Gadkari stated that there is no longer a need to provide subsidies for the electric vehicles (EVs) market as consumers are increasingly choosing EVs or CNG vehicles. Speaking at the BNEF Summit, Gadkari mentioned that with the decrease in production costs due to rising demand, additional subsidies are unnecessary.
He emphasized that consumers are opting for electric and CNG vehicles independently, highlighting that the GST on electric vehicles is lower than that on petrol and diesel vehicles. Gadkari stated, “In my opinion, manufacturing of electric vehicles no longer needs to be subsidized by the government. The call for subsidies is no longer justified.”
Meanwhile, Union Heavy Industries Minister H D Kumaraswamy revealed that the government is in the process of finalizing the third phase of the FAME scheme for electric mobility adoption. The upcoming FAME 3 scheme will replace the current EMPS 2024, which is set to expire in September.
This development marks the government’s commitment to promoting the adoption of electric vehicles in India while aligning with the changing dynamics of the EV market.
Published 05 September 2024, 10:07 IST