Cut EV cost, forego profit initially to capture mkt: Gadkari to automakers
NEW DELHI: Asserting that India has full potential to emerge as a global hub for electric vehicles by 2025, Union Minister Nitin Gadkari on Friday asked automobile manufacturers to reduce cost and forego profit initially to capture market and fuel growth.
Once the market picks up there will not be any looking back, Road Transport and Highways and MSMEs Minister Gadkari said, promising all support to manufacturers in the initiative aimed at cutting India’s huge import costs of crude and arresting pollution.
The minister said he is scheduled to make an hour-long presentation on EVs before the Chief Justice of India post-Deepavali.
“E-mobility is going to be the future mode of economic transport...There is economic viability for manufacturers, but presently they are not in a mood to reduce cost. Reducing cost may result in some losses initially, but will bring great benefits. As a marketing strategy you have to reduce the cost to get numbers,” Gadkari said at a Ficci-organised conference.
He also said India has the potential to become the largest EV producer in the world in the next five years. However, Indian manufacturers prefer to wait and watch and are late in participating in any global competition.
“Now is the time to harbour the ambition to become number one... the raw material is available, power rates are reducing...you have a win-win situation,” he told carmakers.
He also cautioned them to not to be entangled in bureaucratic tangles.
Globally automobile companies have introduced several innovations in the segment, he said.
The minister admitted significant EV-specific concerns persist like on batteries, charging, and driving range that prevent a large-scale consumer pull, but these issues being addressed rapidly.
He expressed concerns over the fact that India needs to import oil to cover over 80 per cent of its transport fuel, saying import of crude is a big economic problem. Terming EVs as a solution to curb air pollution, he said 22 new green expressways are planned, including Bangalore-Chennai - which will be completed in three years.