Nitin Gadkari, Union Minister for Road Transport and Highways, GOI, recently stated an important projection regarding the electric vehicle (EV) market in India. He highlighted that within the next four to six months, the prices of electric vehicles are expected to approximate those of petrol-powered vehicles. This development could significantly influence consumer adoption of EVs across the country.

At the 20th FICCI Higher Education Summit 2025, Minister Gadkari highlighted India’s substantial dependence on fuel imports, which amounts to approximately ₹22 trillion annually. He emphasised that this reliance puts considerable pressure on the nation’s economy while contributing negatively to environmental sustainability.

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“Electric vehicles will soon be priced on par with petrol vehicles,” he remarked, suggesting that this price convergence would encourage a faster transition to cleaner mobility solutions.

Recent government measures to rationalise vehicle taxation have already contributed to price reductions. The Goods and Services Tax (GST) Council has simplified tax slabs and lowered rates, resulting in more affordable car prices. For instance, small cars—defined as those under four metres in length with petrol engines up to 1,200 cc or diesel engines up to 1,500 cc—now attract an 18 % GST rate, down from 28 % previously. Larger vehicles and SUVs are subject to a uniform 40 % GST rate.

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Minister Gadkari expressed confidence in India’s trajectory toward becoming the world’s largest automobile market within the next five years. He noted that when he assumed office, the automotive sector’s market size was approximately ₹14 trillion; it has since expanded to nearly ₹22 trillion. Presently, India ranks third globally in this sector after the United States, with a market size of ₹78 trillion, and China, which stands at ₹47 trillion.

The minister further referenced the critical role of biofuels in India’s energy transition. He reported that farmers have generated additional income of around ₹45,000 crore through ethanol production from corn. Despite some recent criticism regarding the transparency of ethanol blending policies, the government remains committed to promoting biofuels as part of its sustainability agenda.

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Overall, these developments underscore India’s commitment to fostering a cleaner, more sustainable transportation ecosystem while supporting economic growth and reducing fuel import dependency.