In addition to lowering the price of electric vehicles, the government will also focus on cleaner fuels like hydrogen and ethanol-blended gasoline
Union Minister for Roads and Highways, Nitin Gadkari, said in a recent media event that he expected electric vehicle prices to fall in the next two years. He believes that electric two-wheelers and four-wheelers could reach the same price level as their gasoline-powered counterparts, while prices for electric buses would compete with those of diesel-powered ones.
The claim is pretty bold considering that a typical electric four-wheeler can cost almost twice as much as its gasoline-powered counterpart. The minister relies heavily on local battery production to keep costs in check. Currently, EV manufacturers have to import batteries and some other components, which is the main reason for the high prices for electric cars.
The union minister also stated that up to 81 percent of the total makeup of lithium-ion batteries is currently manufactured locally in India and that number could rise to 100 percent in the future. Institutions such as IITs, ISRO and DRDO are already working on this together with the government.
“We made the BS VI story successful. I thank all of the industry for their efforts and cooperation. We need to understand that the country is grappling with the big problem of importing up to 800,000 rupees ($ 108 billion) of crude oil each year, which is pushing us back economically. That being said, increasing pollution is an even bigger problem for states like New Delhi dealing with it, ”he said Nitin Gadkari.
After the implementation of the BS6 emission standards last year, the focus has now shifted to electrification. Alternative propulsion technologies are also being considered, and several laboratories across India are reportedly working on it. The production of alternative fuels such as ethanol is steadily increasing. The minister also called on the auto industry to develop flex-fuel engines for two-wheelers and passenger cars.
In order to promote electric vehicles, the central and state government are offering buyers in India benefits such as subsidies, tax exemptions, etc. However, the biggest challenge remains that there are no charging stations across the country. If electric vehicles are to enter the mainstream market, the charging infrastructure for electric vehicles must match the level of gas stations in India.