Electric vs petrol cars: Gadkari says prices to equalise within six months

Union Road Transport and Highways Minister Nitin Gadkari on Monday said electric vehicle (EV) prices in India are likely to match those of petrol-powered vehicles within the next four to six months.

 

Speaking at the 20th FICCI Higher Education Summit 2025, Gadkari said India’s heavy dependence on fossil fuels is both an economic strain and an environmental challenge, noting that the country spends ₹22 trillion annually on fuel imports.

 

“Within the next four to six months, the cost of electric vehicles will be equivalent to that of petrol vehicles,” he said.

 

Automobile prices have already declined in recent months following the government’s decision to reduce Goods and Services Tax (GST) rates by merging slabs and removing cess on vehicle sales and purchases. The GST council has reduced the car prices by slashing the levy on small cars (under 4 metres and 1,200 cc for petrol/1,500 cc for diesel) to 18 per cent from 28 per cent earlier. Larger cars and SUVs (over 4 metres and 1,500 cc) will now attract a flat 40 per cent GST rate.

 

Significant drop in car prices

 

Maruti Suzuki India has cut prices by up to ₹1,30,000 across models. According to the company, the S-Presso has received the highest reduction, with prices lowered by up to ₹1,29,600. The Alto K10 is now cheaper by up to ₹1,07,600, while the Celerio has seen a reduction of up to ₹94,100.

 

Prices of the Wagon R have been cut by up to ₹79,600, and the Ignis now costs up to ₹71,300 less, depending on the variant.

 

Hyundai Motor India has also announced significant price reductions across its vehicle line-up. The cuts range from ₹60,640 on the Verna to as much as ₹2,40,303 on the Tucson.

 

Among other popular models, the Venue has seen price cuts of up to ₹1.23 lakh, the Creta up to ₹72,145, and the i20 up to ₹98,053, depending on the variant.

 

Similarly, Tata Motors has reduced prices ranging from ₹75,000 to ₹1.55 lakh across its passenger vehicle line-up. The Tiago is now cheaper by ₹75,000, while prices of the Tigor have been reduced by ₹80,000. The Altroz has seen a cut of ₹1.10 lakh, the Punch by ₹85,000, and the Nexon by ₹1.55 lakh. The company’s flagship SUVs, the Harrier and Safari, are now cheaper by ₹1.4 lakh and ₹1.45 lakh, respectively.

 

Mahindra & Mahindra has also reduced prices by up to ₹1.56 lakh across several models. The Bolero/Neo range is cheaper by ₹1.27 lakh, while the XUV3XO petrol variant is down by ₹1.4 lakh and the diesel version by ₹1.56 lakh. The Thar 2WD now costs ₹1.35 lakh less, and the Thar 4WD is cheaper by ₹1.01 lakh.

 

Among other models, the Scorpio Classic has seen a price reduction of ₹1.01 lakh, the Scorpio-N by ₹1.45 lakh, the Thar Roxx by ₹1.33 lakh, and the XUV700 by ₹1.43 lakh.

 

India to be world’s largest automobile market

 

Gadkari added that India aims to become the world’s largest automobile market within five years. “When I took charge as transport minister, the size of the Indian automobile industry was ₹14 trillion. It has now grown to ₹22 trillion,” he said.

 

At present, India’s automobile industry is the third largest globally, after the United States (₹78 trillion) and China (₹47 trillion).

 

Farmers earnings from ethanol production

 

Gadkari also noted that farmers have earned an additional ₹45,000 crore by producing ethanol from corn, highlighting the growing role of biofuels in India’s energy transition.

 

Recently, the minister has faced public criticism over the policy on ethanol blending with petrol, with several stakeholders alleging a lack of transparency in the policymaking process.