India's EV Ecosystem Needs No New Incentives: Piyush Goyal

Minister Of Commerce and Industry, Piyush Goyal in a meeting with representatives of the electric vehicle sector said India's EV ecosystem does not need new incentives and subsidies, as the space is self-sustaining. In the meeting, the representatives of various companies unanimously agreed that they no longer need subsidies once the existing subsidy regime comes to an end.

The Union Minister said, "Today we had an engagement with auto companies, including some startups in the space. Electric mobility is ready and set to fly, they do not need newer incentives or subsidies. The existing subsidies will be there for some more time and will give the appropriate kick start to the EV ecosystem."

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In the meeting with the representatives of the industry, the Union Minister also had deliberations on the subject of the development of battery charging and swapping infrastructure. Additionally, the minister mentioned that the companies have the freedom to choose their own business models.

It is to be noted that the government rolled out an electric vehicle policy in March last year to attract global EV manufacturers. Under the policy, the government offered concessions to companies setting up manufacturing facilities. These manufacturing plants had to have a minimum investment of USD 500 million.

The government also announced plans to install 10,763 public charging stations in the country under the FAME-II scheme. Under this scheme, the government also provides incentives to buyers of EVs in the form of a reduction in the price of electric vehicles.

There is an additional initiative called PM E-DRIVE aimed at promoting electric mobility, which includes support for 14,028 e-buses, 205,392 electric three-wheelers (L5), 110,596 e-rickshaws and e-carts, and 24,791,20 electric two-wheelers. Furthermore, the scheme also supports e-trucks, e-ambulances, EV public charging infrastructure, and the enhancement of testing agencies.

Additionally, the government has initiated production-linked incentive (PLI) programs for the automobile sector and the manufacturing of Advanced Chemistry Cells (ACC). Electric vehicles are included in the PLI program for automotive and auto components, which received approval in 2021 with a financial allocation of Rs 25,938 crore for a duration of five years.