“India will be a global manufacturing hub for EV within the next five years”: Minister of Road Transport, Govt. of India

On 18^th June’20, Nitin Gadkari, Indian Union road transport minister communicated that he believes India will be a manufacturing hub for electric vehicles (EV) and too within the next five years.

He added to his statement that multiple countries are folding there are folding their hands from China post-COVID-19 breakout. This can be a big-time opportunity for India. The minister has urged the Indian automotive companies to foster their EV technology and should also put efforts on discovering options to lithium-ion battery technology. This will be like a supporting pillar to make India the next global manufacturing hub for electric vehicles.

Mr Gadkari said: “I am confident that in five years Indian will become the number one hub for manufacturing electric buses, cars and two-wheelers. There is also a blessing in disguise that a majority of countries are not interested in dealing with China anymore. So, now there is a huge potential for India.”

Gadkari made the statement during a webinar titled ‘India’s Electric Vehicle Roadmap Post COVID-19.'

China has remained on top in regards to electric vehicle production in the world with it producing over 80% of all EVs globally, as the country has the largest reserves of lithium in the world consequently giving it a monopoly in the lithium-ion cell market.

Most components of an EV in India are domestically manufactured like aluminium, aluminium die-casting, etc. However, battery cells are imported which incorporates a heavy cost.

However, R&D is on progress to replace lithium-ion batteries i.e. sodium ion and aluminium cells.

The Minister has conveyed the possibility of income tax benefits for research undertaken in this field. The minister has offered support for “any scheme which will help us become self-dependent. It is time for Indian scientists, innovators and start-ups to find out Indian alternatives to everything”.