India’s Electric Vehicle Revolution: Prices Poised to Match Petrol Cars

Union Minister for Road Transport and Highways, Nitin Gadkari, recently announced a major milestone for India’s electric vehicle (EV) market: within the next four to six months, EV prices are expected to match those of petrol-powered vehicles. Speaking at the 20th FICCI Higher Education Summit 2025, Gadkari emphasized that this development is a crucial step in accelerating EV adoption, reducing reliance on fossil fuels, and boosting India’s position in the global automobile industry.

The move comes as part of a broader government strategy to encourage clean energy and promote sustainability. Affordable EVs are seen as key to encouraging Indian consumers to switch from conventional vehicles, thereby reducing both emissions and the nation’s fuel import bill.

Union Minister Nitin Gadkari | Firstpost

Economic and Environmental Imperatives

Gadkari highlighted India’s economic challenges tied to fossil fuel dependence. Currently, the country spends approximately ₹22 lakh crore annually on fuel imports, representing a significant drain on national resources. In addition to economic considerations, fossil fuel consumption contributes heavily to environmental pollution, making the shift to clean energy urgent.

The transition to EVs is not just about reducing costs; it’s about addressing India’s long-term energy security and environmental sustainability. By promoting electric mobility, the government aims to cut emissions, reduce urban pollution, and lessen the nation’s vulnerability to global oil price fluctuations.

Technological Advancements Driving Affordability

A key factor behind the expected price parity is the rapid advancement in battery technology. When EVs first entered the Indian market, battery costs were prohibitively high, around $150 per kilowatt-hour. Today, thanks to innovation and economies of scale, battery costs have fallen to approximately $55–$65 per kilowatt-hour.

This reduction significantly lowers the overall cost of electric scooters, cars, and buses, bringing them closer to the price range of petrol and diesel vehicles. As a result, the affordability barrier for consumers is diminishing, making electric mobility a viable option for a larger segment of the population.

India’s Vision for the Automobile Industry

Gadkari also outlined a bold vision for India’s automobile sector. When he assumed office, the industry’s size was approximately ₹14 lakh crore; it has since grown to ₹22 lakh crore. Comparatively, the U.S. automobile industry is valued at ₹78 lakh crore, and China’s at ₹47 lakh crore.

The government aims to position India as the world’s leading automobile manufacturer within the next five years. Supporting EV adoption, promoting alternative fuels, and incentivizing innovation are central strategies to achieve this goal. Such a vision underscores India’s ambition not just to grow domestically but to compete globally.

Alternative Fuels and Rural Empowerment

Beyond electric vehicles, Gadkari emphasized the importance of diversifying India’s energy sources. The promotion of ethanol, CNG, and isobutanol for vehicles can reduce diesel imports while offering economic opportunities for farmers. For instance, the production of ethanol from corn has already provided Indian farmers with an additional ₹45,000 crore in income.

The minister also stressed the potential of electric tractors and engines powered by alternative fuels, which could transform agriculture while contributing to cleaner energy solutions. By integrating rural economic growth with sustainability goals, India can achieve a dual benefit: environmental protection and economic empowerment.

The MGMM Outlook

India is standing at the threshold of a remarkable transformation in its transportation landscape, with electric vehicles (EVs) soon reaching price parity with traditional petrol cars. Union Minister Nitin Gadkari’s announcement signals more than just an economic shift; it reflects a strategic commitment to sustainability, energy self-reliance, and environmental stewardship. By making EVs affordable for the average consumer, India is fostering a culture of cleaner mobility, reducing dependence on imported fossil fuels, and tackling urban pollution head-on. This change also embodies a vision of technological progress, as falling battery costs and innovations in electric mobility open the door to widespread adoption across cities and rural regions alike.

The government’s initiative extends beyond just automobiles. By promoting alternative fuels like ethanol, CNG, and isobutanol, India is integrating rural development with environmental goals, offering farmers new avenues of income while contributing to national energy security. Electric tractors and engines powered by alternative fuels symbolize this dual focus on ecological balance and economic empowerment. As the nation embraces this transition, it is not merely adapting to global trends but actively positioning itself as a competitive force in the global automobile industry, proving that sustainable growth and technological innovation can coexist to shape India’s future.

(Sources: Firstpost, India TV News, Mint)