'Reduce the rate': Gadkari tells auto industry to lower EV prices in consumers' interest

Union minister Nitin Gadkari on Wednesday urged automobile manufacturers to bring down the prices of electric vehicles (EVs), saying that lower rates are key to wider adoption amid efforts to reduce the country's dependence on fossil fuel imports.

Noting that lithium-ion battery costs have dropped from USD 150 to USD 50 per kilowatt-hour since the government decided to push EVs, Gadkari said prices have stayed high because demand currently outstrips supply.

He asked the industry to lower rates "in the interest of the consumer" and predicted that rising production would force companies to do so anyway, as competition intensifies and quality improves.

"I am requesting the automobile industry to reduce the rate in view of the competition and in the interest of the consumer. If the production is surplus, 100% they will have to reduce the rate because of competition and improve the quality," he said at the inaugural HT Auto Leaderboard Awards 2026. The event sought to recognise the vehicles, people and innovations shaping India's automotive industry.

Also Read: ‘My dream is to make India’s automotive industry the world’s No. 1’: Nitin Gadkari at HT Auto Awards

"When we had decided to introduce electric vehicles, cost of the lithium-ion battery was USD 150 per kilowatt per hour. Presently it comes to USD 50 per kilowatt per hour. But because the demand is more and supply is less, that is the reason the rate of the EV vehicle is still constant. We need to reduce the rate," he added.

Gadkari says EVs are the future

Electric mobility will be the future, Gadkari said. He said the aim is to "make India a global export hub" in the automobile sector. "Brand India through quality and safety," he said.

He also spoke on Bharat NCAP -- the “New Car Safety Assessment Programme” that seeks to provide "star ratings" to automobiles based upon their performance in crash tests.

"This (programme) is very useful for the export market. A lot of manufacturers from across the world are bringing their cars to India and taking Bharat NCAP's approval. So, this is a success story," he said.

The Union minister also said India's automotive industry has the potential to become the largest in the world, describing it as a key engine of economic growth.

He noted that the sector contributes ₹22.75 lakh crore to the economy, underscoring its central role in the country's growth and industrial ecosystem.

Gadkari highlighted India's progress in developing an ethanol-based economy, saying “ethanol economy has been successful.”

Also Read | 'Can no longer work much': Nitin Gadkari's remark sparks retirement buzz. He clarifies

"Aready, the ethanol economy is very successful. Since 2022, we have had four crore four-wheelers and 20 crore two-wheelers running on E20 petrol. We have never received a single complaint. Even a lot of people sitting here must have E20 in their vehicles. Is there any complaint? There is no complaint," he said.

The event also featured two panel discussions on ‘Make for the World: Is India ready to become the world's auto powerhouse?’ and ‘Road to 2030: Ethanol, EVs & beyond - India's new mobility energy mix’.

The ‘Make for the World’ panel discussion focused on manufacturing, exports, technology and innovation.

The ‘Road to 2030’ panel focused on the changing mobility energy mix and the role of ethanol, EVs and other emerging technologies in India's transportation sector.