EV Industry Doesn’t Need More Subsidies: Piyush Goyal

Indian Union Commerce Minister Piyush Goyal on Friday said that India’s electric vehicle industry doesn’t need more subsidies as it has matured enough. He also said that the existing subsidies will continue for some more time to help players in the EV segment strengthen their presence.

Discussion with EV Stakeholders

Piyush Goyal held a meeting with the EV industry stakeholders for a discussion on the charging and battery swapping infrastructure in the country.

The meeting was also attended by the Minister and Officials from the Ministries of Heavy Industries, NITI Aayog, Power Ministry, etc. Representatives from top brands like TVS Motor, Hero Motocorp, Tata Motors, Audi, Mahindra, etc were also present.

Unanimous Consensus

“Everybody was unanimous in the room across sectors that they don’t require subsidies.” Piyush Goyal added.

He highlighted that all stakeholders agreed unanimously that while EV subsidies are proving to be effective in the growth of the industry, they won’t be required post the end of the current policy.

Piyush Goyal also said that the Centre is also open to suggestions and recommendations for different ways to boost the adoption of EVs in the country.

Current Subsidies

At present, the Government offers subsidies under the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement’ (PM E-DRIVE) Scheme, with a financial budget of Rs.10,900 crore, which came into effect from October 1, 2024, and shall remain in force until March 31, 2026

Official Statements

“E-mobility sector is ready and set to fly. They don’t need additional incentives. In almost all sectors now, there are options available by which e-mobility can be marketed. It’s a good economic case to move from ICE engine to EVs and hybrids,” Piyush Goyal told the media.

“Newer incentives for EV are not needed at the moment. The Centre is offering an array of benefits to promote EV adoption. Many industry players have yet to fully leverage existing initiatives like auto PLl schemes. We anticipate 2025-2026 to be a pivotal period for the EV ecosystem in India,” mentioned Puneet Gupta.

Final Thoughts

Minister Piyush Goyal’s remarks reflect the government’s faith in the development of the Indian EV sector and its capacity to expand without additional incentives, depending upon market forces and existing subsidies to drive the EV revolution in the country.