New Delhi: In a move that could revolutionize the automotive industry, Union Minister Nitin Gadkari announced on Tuesday that the Vehicle Scrapping Policy is expected to significantly reduce auto component prices. Speaking at the Times Drive Auto Awards 2025 in New Delhi, Gadkari revealed that this initiative could lead to a 30% decrease in component costs, potentially making vehicles more affordable for consumers.
The Road, Transport and Highway Minister emphasized the policy’s far-reaching impact on the automotive sector. “We brought scrapping policy, because of which prices of the auto component will be reduced by 30 per cent,” Gadkari stated, highlighting the direct correlation between component prices and overall vehicle costs.
Gadkari also touched upon the growing electric vehicle (EV) market, noting that demand is likely to surge as the government implements measures to enhance charging infrastructure across cities and highways. He pointed out that the adoption of EVs is expected to accelerate as input material prices decrease.
The minister’s remarks shed light on the evolving landscape of India’s automotive industry. He mentioned that prices of lithium-ion batteries, a crucial component in EVs, have already seen a reduction in India. Gadkari revealed that major corporations like Adani Group and Tata are planning large-scale production of lithium-ion batteries in the country.
Further bolstering India’s position in the EV market, Gadkari disclosed that significant lithium reserves discovered in Jammu and Kashmir account for 6% of the world’s total reserves. This finding could potentially support the manufacture of millions of lithium-ion batteries.
The minister concluded by highlighting the robust growth of India’s automobile industry, which has now become the third-largest globally, surpassing Japan. This achievement underscores the sector’s increasing importance in the national economy and its potential for further expansion.
