Government To Give Incentives To Boost Electric Vehicles, Amitabh Kant Says
Niti Aayog had earlier estimated that the adoption of electric vehicles could save $60 billion fuel costs by 2030.
The government would support manufacturing and selling of electric vehicles by giving incentives such as lower road taxes, so that the automobile sector continues to play a major role in India’s GDP and job creation, Amitabh Kant said today.
In the long run, India must become a major manufacturer of automobiles, batteries and interoperable charging stations, and help reduce pollution in cities, the Niti Aayog Chief Executive Officer said, adding that it should be done in a manner that does not disrupt combustion vehicle manufacturing.
We would like to support electric vehicles by providing vast range of initiatives such as lower road taxes.Amitabh Kant, CEO, Niti Aayog
“The government will further act as a catalyst so that automobile sector continues to play a major role in India's GDP and job creation as well as in exports,” he said at an event organised by industry body Assocham.
Kant pointed out that the automobile along with automobile component industry is one of the key drivers of India's economic growth, contributing 7.2 percent to the GDP.
Citing several studies, Kant said by 2027-28, the cost of EV battery will come down from $273 per kilowatt hour to $73 per kilowatt hour, even without taking Indian demand into consideration.
“If you take Indian demand into consideration, then it will come down to $60 per kilowatt hour,” he noted.
Niti Aayog in a recent report had estimated that accelerated adoption of electric and shared vehicles could save $60 billion in diesel and petrol costs by 2030.
Piyush Goyal, who held the power portfolio till recently, is currently the railways minister, said that India aims to become 100 percent e-vehicle nation by 2030.