Union Road Transport & Highways and MSMEs Minister Nitin Gadkari on Thursday said India has potential to become a major manufacturing hub for electric vehicles in the next five years.
According to him, the Centre is trying to extend best possible concessions to this sector, and has lowered GST rate on electric vehicles to 12 per cent.
Addressing a webinar on ‘India’s Electric Vehicle Roadmap post-Covid-19’, Gadkari said that he was aware of the issues facing the sector, but was also sure of improvement in the business environment as sales volumes are expected to rise.
He said the world is no more interested in doing business with China, which is a very good opportunity for Indian industry to pick up the shift in business.
Besides, he indicated the ensuing vehicle scrapping policy, commenting that it will give a fillip to auto manufacturing sector.
The Minister further said the Centre is looking at initiating a pilot project for developing an electric highway on the upcoming Delhi-Mumbai Green Corridor.
In addition, he called upon the auto industry to go in for indigenisation and support the Prime Minister’s ‘Aatma Nirbhar Bharat Abhiyan.’