Addressing reporters, Kumaraswamy committed to adopting global best practices for EV adoption. He linked this drive to the ambitious ‘Developed India 2047’ vision, stressing that prioritizing EVs would supercharge local production, localization efforts, and establish India as the go-to source for electric vehicles, advanced batteries, and key components.

The minister spotlighted India’s auto component export boom—from $8 billion a decade ago to $16.9 billion today—signaling the country’s enhanced role in international supply networks and manufacturing prowess.

Keynote speaker Amitabh Kant, ex-NITI Aayog CEO, forecasted a trillion-dollar global EV industry by 2035. With supply chains reshuffling due to geopolitical shifts, he called on India to cement its status as a trusted manufacturing hub. Kant framed electric mobility as a multifaceted boon: environmental, economic, industrial, tech-driven, and geopolitically astute, integral to India’s 2047 aspirations.

Vikram Handa, FICCI Green Mobility Co-Chair, detailed India’s matured ecosystem. Spanning critical minerals processing, battery cells, packs, and vehicles from bikes to heavy trucks, plus charging networks, ‘Green Mobility 2.0’ exemplifies India’s comprehensive strategy and boundless prospects.

This convergence of visionaries signals a pivotal moment. India’s blend of policy resolve, export growth, and value chain mastery positions it to capture a lion’s share of the EV revolution, propelling sustainable growth and global leadership.

People often express, “Hey! The car is affordable, or reasonably priced after subsidies, but the insurance is much higher than that of a petrol or diesel car!” This is a valid question. Let’s explore the reasons behind the higher insurance costs for EVs and the factors contributing to it.

Car insurance costs depend on several factors, including engine capacity, the car model, and how the car is used, so there’s no fixed amount. Third-party insurance can start from ₹2,000, while comprehensive policies may cost ₹10,000 to ₹20,000 or even more.

EV insurance is determined based on your car’s kilowatt (kW) capacity, which can cost ₹1,780 to ₹6,712 per year or even more for longer terms (for example, ₹5,543 to ₹20,907). Additionally, the make and model of the car also influence insurance rates.

The battery is the core component of any EV. Currently, an electric car’s battery constitutes approximately 30% to 40% of its total cost. If the battery is damaged in an accident, the replacement cost can run into lakhs of rupees.

For example, if an EV battery needs replacement, the cost can range from ₹4 to ₹6 lakh, whereas engine repairs in a petrol car are not that expensive. This is why insurance companies perceive a higher risk and increase the premium.

EVs in India are still a new technology. Their parts are not readily available everywhere, unlike petrol and diesel cars.

If an electric car’s fender, control module, or battery pack gets damaged, the cost of ordering parts and repairs is high.

Moreover, the number of dealerships and service centers is limited, which further increases repair costs.

Companies increase premiums to cover these additional expenses.

EVs often come with advanced features, such as ADAS (Advanced Driver Assistance Systems), smart connectivity, digital displays, and automatic braking systems.

While these features make the car modern and safe, their repair costs are extremely high.

If sensors are damaged even in a minor accident, the bill can be in lakhs rather than thousands.

Insurance companies must consider this risk.

In recent years, there have been instances of EV batteries catching fire. Although companies are continuously working on battery safety, this remains a significant risk for insurance providers.

Events like battery failure or fires can necessitate the replacement of the entire vehicle.

Additionally, EV repairs require special training and tools that are not easily accessible everywhere.

Therefore, insurance costs increase along with the risk factor.

The resale value of petrol and diesel cars in the second-hand market is easily determined. However, it’s still unclear how much EVs will be worth after 5 to 6 years.

Questions always linger about the battery’s lifespan.

If the battery’s performance declines, the vehicle’s value can decrease significantly.

Insurance companies, therefore, set higher premiums to protect themselves.

Even with government subsidies, the initial cost of EVs is higher than that of petrol-diesel cars.

A more expensive car means more expensive insurance.

Companies determine premiums based on the on-road price of the car, and since EVs are more expensive, the premiums naturally increase.

EVs are still a new market in India. Insurance companies have very limited data on their performance, maintenance costs, and long-term damage.

When companies lack clear data, they increase premiums to cover the risk, acting as a kind of safety net.

Although EV insurance is expensive, the good news is that premiums will gradually decrease as the EV market expands.

The government is also considering tax breaks on insurance to promote green mobility.

Additionally, battery technology will become cheaper and safer, reducing repair costs.

As the EV network and demand grow in the coming years, insurance will become more affordable.

Speaking at the 7th Auto Retail Conclave of the Federation of Automobile Dealers Associations (FADA), Gadkari highlighted that scrapping can yield high-quality metals, which can be 100% recycled. He believes this process will reduce costs and strengthen domestic production capacity.

Gadkari urged both vehicle manufacturers and dealers to view vehicle scrapping as an opportunity rather than a burden. He noted that India imports fossil fuels worth approximately ₹22 lakh crore annually. A comprehensive strategy combining electric vehicles, alternative fuels, and scrapping is necessary to reduce this substantial expenditure.

He also mentioned that the demand for EV production and new battery technologies like sodium and aluminum batteries will increase rapidly in the coming years. The essential minerals for these can be obtained in large quantities from scrapping. Gadkari stated that the government is already working on a professional policy to facilitate the use of raw materials obtained from scrapping.

Addressing the industry, Gadkari stated that scrapping will benefit manufacturers in the domestic market and also increase export opportunities. He specifically addressed dealers, urging them to engage in vehicle scrapping, which will open up a new and significant market for them.

This clarifies that the scrapping policy can be a strong pillar on India’s path to green mobility. If dealers and manufacturers collectively take on this responsibility, the industry will benefit, and the country will move towards a self-reliant and environmentally responsible future.

This SUV will be exported not only to the Indian market but also to over 100 countries, including Japan and Europe. The first batch has begun production.

Prime Minister Modi emphasized the significance of the day in India’s journey towards self-reliance and becoming a hub for green mobility through his X post. The e-VITARA was flagged off during the program held in Hansalpur.

This statement not only strengthens the Make in India initiative but also furthers India’s identity in the direction of sustainable mobility.

The Maruti e Vitara features a lithium iron-phosphate (LFP) battery pack. The company has introduced it with two different battery packs: 49kWh and 61kWh. The SUV features 18-inch alloy wheels. The car is 4,275 mm long, 1,800 mm wide, and 1,635 mm high. The company claims that this SUV will offer a range of over 500 kilometers on a single charge. The look and size of the new Maruti e-Vitara are similar to the concept Maruti eVX presented last year.

During the event, PM Modi also initiated the production of hybrid battery electrodes at the TDS Lithium-ion battery plant in Gujarat. Now, over 80 percent of batteries will be produced in India. This step will take India’s battery ecosystem to the next level and reduce foreign dependence.

PM Modi also flagged off a freight train service filled with cars on this occasion. Currently, more than 600 cars are sent daily from the Hansalpur plant via rail. Currently, three trains run daily from here, supplying Maruti vehicles across the country.