Union Minister Nitin Gadkari recently announced that the new Vehicle Scrapping Policy is expected to reduce auto component prices by 30%, making vehicles more affordable for consumers. This policy change is expected to have a significant impact on the automotive industry, with Gadkari predicting that it will lead to a decrease in vehicle costs.
The policy is also expected to boost the adoption of electric vehicles (EVs), as the government implements measures to enhance charging infrastructure across cities and highways. Gadkari noted that the demand for EVs is likely to surge as input material prices decrease, specifically mentioning the reduction in the price of lithium-ion batteries, a crucial component in EVs. This trend is expected to continue, with major corporations like Adani Group and Tata planning large-scale production of lithium-ion batteries in India.
The discovery of significant lithium reserves in Jammu and Kashmir, which account for 6% of the world’s total reserves, will also support the manufacture of millions of lithium-ion batteries, further solidifying India’s position in the EV market. The country’s automobile industry has already grown robustly, surpassing Japan to become the third-largest globally.
Gadkari’s remarks highlight the evolving landscape of India’s automotive industry, with the sector playing an increasingly important role in the national economy. The industry’s growth will continue to contribute to the country’s overall development and expansion. With the introduction of this new policy, the industry is likely to see a significant change, making it more competitive and driving growth for companies and consumers alike.