EV cost will be at par with fossil fuel cars in 3-4 years: Amitabh Kant

New Delhi: The cost of electric vehicles (EVs) will become at par with combustion engine cars in the next three-four years, NITI Aayog CEO Amitabh Kant said on Wednesday. He noted that as the price of batteries decline, India will be ready to make the transition.

'Future is electric'

India has 28 cars for every 1,000 people, which is lower than the US or Europe where there 980 or 850 cars for every 1,000 people, Kant said. This means that as India transits towards urbanisation the future will all be electric, shared and connected, he added.

"We will transit towards there as the cost of battery falls from 276 dollars per kilowatt hour (kWh) to 76 dollars per kilowatt/hour. The cost of electric vehicles will almost become at par with combustion (engine) cars in the next 3-4 years," the NITI Aayog CEO said while addressing a CII event.

'Policy has been aligned to facilitate EV transition'

"We have laid down a policy framework where in the future people will go for electric vehicles, an economic incentive has been created for people to go for this," Kant said.

Kant opined that for India to transition to EVs, adequate spadework needs to be done so that three-wheelers, four-wheelers and buses — all become electric in due course of time. He also remarked that this will cut India's oil import bill, which currently stands at a whopping 111 billion.

India committed to Paris Accord

Reiterating that India made big commitments at the Paris Accord and remains committed to reducing its total pollution by 35 percent, unlike the US which has backed out. As India modernises, the country should create a model of urbanisation where we are able to recycle our water, recycle our waste, where we are able to truly ensure that there is public transportation.

"…the speed at which we are going in terms of hydro, in terms of wind energy in terms of rooftop, we will actually be bypassing the targets that we have set for ourselves," the NITI Aayog CEO said.