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Informist, Monday, Sep 9, 2024

 

--Gadkari: Govt not against incentivising e-vehicles, cleaner tech            
--Gadkari: Discounts, good quality pdts by auto cos aiding customers    
--Gadkari: Moving to cleaner fuel, tech only way for auto cos to grow
--Gadkari: Indian customers benefitting from competition among auto cos
--Gadkari: Tech, cheap labour key to growth of auto parts industry    
--Gadkari: Raw material availability key to auto parts mfg cos' growth    
--Gadkari: Govt giving highest priority to auto industry    
--Gadkari: See auto components industry growing 8-10% in FY25    
--Gadkari: Confident that import of auto components will fall further    
--CONTEXT: Road Minister Gadkari at ACMA annual event

 

By Darshan Nakhwa and Sayantan Sarkar 

 

NEW DELHI – Minister of Road Transport and Highways Nitin Gadkari today said he is not against giving subsidies for electric vehicles or cleaner technology, and his recent statement was based on the belief that electric vehicles will achieve price parity with the internal combustion engine models. 

 

"I am not against any incentives. The heavy industries minister is responsible for it. If he wants to give more incentives on electric vehicles, I don't have any problem," Gadkari said at the annual session of the Automotive Component Manufacturers Association of India today.

 

Last week, the minister had said that he feels the electric vehicle industry no longer needs subsidies as it is in good shape with rising domestic as well as global demand. Further, the variance in tax imposed on internal combustion engine vehicles and electric vehicles already gives a big advantage to the industry. 

 

"The volume is also increasing. So the basis of my assessment was that without a subsidy, companies can maintain that cost because the cost of production is less. Within two years, the cost of internal combustion engine vehicles and electric vehicles will be the same. They won’t need subsidies because they are already saving on fuel. That was my argument," he said.

 

Gadkari today said a shift to cleaner fuel and newer technology is the only way for the domestic automobile sector to grow. He also emphasised the need for more competition in the automobile industry, which will benefit the consumers.   

 

Electric vehicle adoption in India is still in the single digits. The government has set a target of around 30% by the end of the decade. The Faster Adoption and Manufacturing of  (Hybrid and) Electric Vehicles scheme has been driving the early-stage adoption of electric vehicles by providing demand incentives.

 

Speaking about the auto components industry, Gadkari said he expects the industry to grow 8-10% in 2024-25 (Apr-Mar). The availability of affordable labour in the country, and improving technology and raw material availability are key to auto component companies' growth. Ends

 

Edited by Deepshikha Bhardwaj

 

 

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