March 20th, 2025
Union Road Transport and Highways Minister Nitin Gadkari has made a statement that could reshape India’s automotive landscape. Speaking at the 32nd Convergence India and 10th Smart Cities India Expo yesterday, Gadkari declared that electric vehicles in India will cost the same as petrol vehicles within the next six months.
“Within six months, the cost of electric vehicles will be equivalent to the cost of petrol vehicles,” Gadkari said, reiterating a timeline that’s far more aggressive than most industry forecasts.
This announcement comes as India accelerates its push toward electric mobility through several policy initiatives. Gadkari emphasized that the government’s strategy revolves around four key pillars: import substitution, cost-effectiveness, pollution reduction, and promoting domestic manufacturing.
Breaking Down the Numbers
Industry analysts have long pointed to the higher upfront costs of EVs as a major barrier to adoption in price-sensitive markets like India. Currently, electric cars typically cost 25-40% more than their petrol counterparts, primarily due to battery costs.
However, Gadkari has consistently highlighted the operational savings that offset the higher purchase price. “The cost of running an EV is around Rs 1 per kilometer, whereas petrol or diesel cars cost Rs 5-7 per kilometer,” he noted in previous statements.
For the average Indian driver covering 1,200 kilometers monthly, this represents potential savings of Rs 4,800-7,200 per month in running costs – a significant amount that could justify price parity even without further reductions in vehicle costs.
Policy Push Behind Price Parity
Several government initiatives are working in tandem to drive down EV prices:
- The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, with a substantial Rs 10,900 crore outlay, provides upfront incentives for EV purchases.
- Infrastructure development, including the upgrade of approximately 5,500 km of highways under the National Highways for Electric Vehicle (NHEV) pilot project.
- Growing momentum for tax reforms, including potential reductions in GST on EV components from the current 18% to 5%.
- Support for domestic battery production, with companies like Tata Chemicals and Exide Industries establishing manufacturing units in India.
Market observers note that achieving true price parity within six months would require both policy measures and significant technological breakthroughs, particularly in battery technology.
Broader Transportation Vision
Gadkari’s comments weren’t limited to personal vehicles. He also outlined a comprehensive vision for transforming India’s transportation sector.
“We are working on mass rapid transport on electricity,” he stated, linking EV adoption to the broader smart city initiatives that were the focus of the expo.
The minister also announced that the 212-km Delhi-Dehradun access-controlled expressway will be completed within the next three months, underscoring the government’s focus on infrastructure development.
“By making good roads, we can reduce our logistics cost,” Gadkari added, connecting transportation infrastructure improvements to economic competitiveness.
Industry stakeholders are watching closely to see if this ambitious six-month timeline can be achieved. If realized, it would mark a historic inflection point for India’s automotive sector, potentially triggering mass EV adoption much sooner than previously anticipated.
