India has the potential to be the top electric vehicle manufacturer globally and electric vehicle sales in the country are expected to hit 1 crore units per annum by 2030, Road, Transport and Highways Minister Nitin Gadkari said.
In the calendar year 2023, April – November, India's total electric vehicle sales rose around 50% on year to 13,87,114 units. Two-wheelers constituted around 56% of the sales while three-wheelers accounted for around 38%.
“We are working on a mission mode to decarbonise the transport sector and the government is committed to the adoption of import substitute, cost-effective, pollution-free, and indigenous fuels. The low-emission transport, including EVs, will be one the important milestones in achieving the country’s climate goals,” Gadkari said while addressing the EV Expo 2023.
The minister believes that there is no need for any “artificial” push for electric vehicle sales due to its low cost per km operating cost. The higher cost of acquisition is creating a major roadblock to the larger adoption of electric vehicles. “In due course of time, the price of lithium battery will come to $100 per kWh. The cost of electric vehicles will then be equal to that of petrol and diesel vehicles,” he said.
Currently, the cost of an electric vehicle is about 25-30 percent higher compared to a conventional internal combustion engine-powered car, because of the battery cost, significant import content, and lower scale. Automakers and the government expect the electric vehicle’s cost difference to reduce with lower battery costs and higher scale and become similar to internal combustion engine vehicles in the next 1-2 years.
“It is estimated that around Rs 20 lakh crore investment is needed in India for EV ecosystem until 2030. It is a big opportunity for OEMs, component makers, battery makers, and charge point operators. And India has the potential to become the number one electric vehicle maker in the world,” Gadkari said.