Outlook Business Desk
Union Road Transport and Highways Minister Nitin Gadkari stated that electric vehicle prices in India are expected to match petrol vehicle costs within the next four to six months, marking a key milestone in making EVs more affordable nationwide.
At the 20th FICCI Higher Education Summit 2025, Nitin Gadkari highlighted India’s heavy dependence on fossil fuels, calling it both an economic and environmental concern. He noted that the country spends around ₹22 trillion every year on fuel imports.
Following the government’s GST reductions on vehicles, car prices have declined across segments. Small cars now attract 18% GST, while larger cars and SUVs face a flat 40% rate, making automobiles more affordable for Indian buyers.
Maruti Suzuki India has reduced prices by up to ₹1.30 lakh across models. S-Presso leads with a reduction of ₹1.29 lakh, followed by Alto K10 at ₹1.07 lakh and Celerio by ₹94,100, making popular small cars cheaper for buyers.
Hyundai Motor India announced price cuts ranging from ₹60,640 on the Verna to ₹2.40 lakh on the Tucson. Popular models like Venue, Creta, and i20 also saw significant reductions, varying by variant, boosting affordability across its vehicle range.
Tata Motors lowered prices across its passenger vehicle line-up, with reductions between ₹75,000 and ₹1.55 lakh. Models like Tiago, Tigor, Altroz, Punch, Nexon, Harrier, and Safari now cost significantly less, enhancing access for Indian consumers.
Mahindra & Mahindra reduced vehicle prices by up to ₹1.56 lakh. Key models including Bolero, XUV3XO, Thar, Scorpio Classic, Scorpio-N, Thar Roxx, and XUV700 have become more affordable, appealing to both urban and rural buyers seeking SUVs and utility vehicles.
Gadkari emphasised India’s ambition to become the world’s largest automobile market within five years. From ₹14 trillion when he assumed office, the industry now stands at ₹22 trillion, ranking third globally after the US and China in market size.
Highlighting biofuels, Gadkari stated that farmers earned ₹45,000 crore producing ethanol from corn. This development supports India’s energy transition, despite recent debate regarding transparency in ethanol blending policies with petrol, which raised concerns among stakeholders.