Bhavish Aggarwal, CEO of Ola Electric, made a statement at Network18’s Green Bharat Summit by declaring that Indian consumers no longer need EV subsidies.
Aggarwal acknowledged the government’s proactive role in incentivizing EV adoption through schemes like FAME (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India) and PLI (Production Linked Incentive).
However, he believes that the industry has matured to a point where direct consumer subsidies are no longer necessary.
His bold statement comes as the country is rapidly transitioning towards electric mobility, with Ola Electric itself playing a major role in driving this change.
Ola Electric is India’s largest electric two-wheeler manufacturer and tops the list of best-selling electric two-wheelers as of November. According to VAHAN data, The company reported a substantial decrease in retail sales, with sales figures falling to 29,191 units compared to 41,755 units in October.
Key takeaways from Bhavish Aggarwal’s address at Moneycontrol:
- Subsidies have served their purpose: He argued that FAME, which offers direct discounts to EV buyers, has successfully spurred initial adoption. With the EV market gaining momentum, he believes these subsidies should be phased out, as planned by the government.
- Focus on localized manufacturing: Bhavish Aggarwal emphasized the importance of PLI schemes in encouraging local production of EVs and their components. He highlighted Ola Electric’s significant investments in these schemes, positioning the company as a leader in building a robust domestic EV ecosystem.
- India’s global role in combating climate change: Bhavish Aggarwal underscored India’s critical role in the fight against climate change. He stressed the need for India to lead the global south in developing and deploying green technologies, with the EV sector playing a pivotal role.
- Building the world’s largest EV hub: He envisions India as a global powerhouse in EV manufacturing, encompassing the entire value chain from components to finished vehicles. He believes that Ola Electric is at the forefront of this ambition, setting up comprehensive capabilities within the country.
