‘Reduce the Rate’: Gadkari Urges Auto Industry to Lower EV Prices in Consumers’ Interest

Gadkari asks automakers to cut EV prices

Union Road Transport and Highways Minister Nitin Gadkari has called on the automobile industry to reduce the prices of electric vehicles, stressing that consumers should benefit from increasing competition and production.

Speaking at the HT Auto Leaderboard Awards 2026, Gadkari appealed to automobile manufacturers to bring down rates while improving quality as India's electric mobility market expands.

He said that if production exceeds demand, competition among manufacturers would eventually put pressure on companies to reduce prices.

‘In the interest of the consumer’

Gadkari's remarks focused on the need for competitive pricing in India's automobile market.

He said the industry should reduce prices “in view of the competition and in the interest of the consumer”, adding that increased production would create competitive pressure on companies.

The minister also linked competition with improvements in vehicle quality, indicating that manufacturers would need to balance affordability with better products.

EV adoption and government support

The Centre has been supporting electric mobility through measures aimed at reducing the upfront cost of EVs.

Under the PM E-DRIVE scheme, the government provides demand incentives for several electric vehicle categories, including electric two-wheelers and three-wheelers. According to the Ministry of Heavy Industries, the scheme has an allocation of ₹4,391 crore for the deployment of 14,028 electric buses and is designed to support more than 28 lakh EVs.

The government has also introduced the PARIVARTAN scheme for replacing older commercial vehicles in Delhi-NCR with newer BS-VI-compliant or electric vehicles. The scheme includes incentives such as interest savings, road-tax and registration-fee waivers, and discounts from participating manufacturers.

India's auto industry targets greater global competitiveness

Gadkari has repeatedly highlighted the automobile industry's role in India's economy. At the HT Auto event, he said the sector contributes more than ₹22.75 lakh crore to the economy and described the automobile industry as an important driver of economic growth.

At a September 2026 convention of the Society of Indian Automobile Manufacturers, Gadkari also emphasised innovation, quality and competitive pricing as important factors for the industry's global ambitions.

New fuel-efficiency rules could influence EV pricing

The comments come as India's automotive industry prepares for the CAFE-III fuel-efficiency framework, which will apply from April 2027 to March 2032.

Industry executives cited in reports said the new framework could encourage automakers to introduce smaller and more affordable EV models because higher EV sales could help manufacturers meet fleet-average efficiency targets.

For consumers, the combination of increasing EV production, competition, government incentives and changing regulatory requirements could influence the prices and range of electric vehicles available in the Indian market.