News > Electric Vehicle makers no longer need to be subsidised by govt: Gadkari

Electric Vehicle makers no longer need to be subsidised by govt: Gadkari

Union minister Nitin Gadkari said initially costs of manufacturing electric vehicles were high, but as demand has increased, production costs have dropped, making further subsidies unnecessary. 28% GST is levied on vehicles powered by internal combustion engines, including hybrids, and 5% on EVs. Gadkari said the overall shift from fossil fuels to alternative fuels would be a gradual process, given the size of India's economy and energy needs.