‘India’s EV sector ready to fly, doesn’t need new subsidies’: Piyush Goyal

“India’s electric mobility segment is ready and set to fly. There is no need for new incentives as the existing ones are sufficient to kick-start the ecosystem,” Goyal said during a press event after a meeting with stakeholders from the EV sector, reported Business Standard.

Highlighting the factors driving the transition from internal combustion vehicles to EVs, Goyal pointed to reduced battery costs, the availability of battery-swapping systems, and the economic benefits of owning an EV.

His remarks align with Union Road Transport and Highways Minister Nitin Gadkari’s statement last year, asserting that subsidies were no longer warranted due to falling production costs and increased consumer adoption of EVs and compressed natural gas vehicles.

Goyal further noted that stakeholders at the meeting were unanimous in their stance against the need for additional subsidies.

“Everyone in the room was unanimous that once the existing subsidy regime comes to an end, none of them require subsidies,” he was quoted as saying by Business Standard.

The discussions also included safety standards for EVs and expanding battery charging and swapping infrastructure.

In March last year, the government introduced an EV policy providing incentives for companies investing at least $500 million in manufacturing units in India.

The PM E-Drive subsidy scheme, launched under this policy, offers Rs 10,000 per electric two-wheeler until March 2025, with the subsidy reducing by half in the following financial year.

For electric three-wheelers, the scheme provides a Rs 50,000 subsidy, which will decrease to Rs 25,000 starting in April.

Additionally, many states have rolled out subsidies to attract EV buyers.

Under the FAME-II scheme, the government plans to establish 10,763 public charging stations nationwide.