KEY HIGHLIGHTS
- Battery cost has dropped to $55 per KW from $150 KW
- GST on EVs are 5%
- 14 cars are available in all-electric avatar under Rs 20 lakh in India
The price of EVs will match that of petrol and diesel cars in the next four to six months, said Nitin Gadkari, Minister of Road Transport and Highways of India, at an FICCI event. He further mentioned that the battery cost, which earlier stood at around $150 per kilowatt-hour, has now dropped to between $55 and $65 per kilowatt-hour. Let's take a look at some of the key factors that could help EV prices align with ICE vehicles soon. In the meantime, do join our 91Wheels WhatsApp Channel to stay updated with all the latest automotive news.
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Electric Vehicles In India
Electric vehicles in India are getting closer than ever to matching the prices of petrol and diesel cars, and there are some clear reasons behind it. The biggest one is the sharp drop in battery costs - what used to cost around $150 per kWh now comes down to about $ 55 - $65, which directly brings down the overall price of EVs. At the same time, local manufacturing under the "Make in India" push is helping cut import costs, and government support through lower GST (just 5% on EVs compared to 28% on ICE cars) and schemes like FAME-II is making them even more affordable.
As more brands ramp up production and charging networks expand across cities, economies of scale are kicking in, helping manufacturers price EVs more competitively. Cars like the Tata Tiago EV and MG Comet EV already show how close the gap has become. Add to that the low running and maintenance costs, plus the rise of battery recycling in India, and its easy to see why EVs could soon be priced right alongside petrol and diesel cars.
There are currently 14 electric vehicles on sale in India, covering almost every segment - from hatchbacks and sedans to compact SUVs and even MPVs. This clearly shows that the old myths around EVs are fading away, and more people are now confident enough to use them as their primary cars. However, whether EVs will actually match the prices of petrol and diesel cars within the next six months, as claimed, still seems a bit hard to believe.
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Verdict
Nitin Gadkari has been strongly pushing the adoption of electric vehicles in India, and the shift is happening much faster than anyone expected. From January to October 2025, most of the major new launches have been electric, with only a few ICE models making their debut. Among all the brands, Mahindra and MG have truly hit the bull's eye by offering a premium experience combined with thrilling electric performance - a combination that's reshaping the entire landscape of the Indian automotive industry.
