January 3rd 2025.
The Minister of Commerce and Industry, Mr. Piyush Goyal, held a meeting with various electric vehicle companies in New Delhi on Friday. The main agenda of the meeting was to discuss the future of subsidies for the EV sector once the existing subsidy regime comes to an end.
During the meeting, stakeholders from the EV sector also addressed concerns regarding the development of battery charging and swapping infrastructure. The minister assured the companies that they are free to choose their own business models, whether it is collaborating and sharing resources for battery swapping or selling vehicles with their own batteries.
In response to a question about the views of companies on subsidies, Mr. Goyal stated that everyone in the room was in agreement that once the existing subsidy regime ends, none of them would require further subsidies to grow. He also highlighted that each sector has a self-sustaining model and does not call for additional subsidies.
In March last year, the government introduced an electric vehicle policy to attract global EV makers to set up manufacturing units in the country with a minimum investment of USD 500 million. Additionally, the government plans to install 10,763 public charging stations across the country under the FAME-II scheme. This scheme provides incentives to buyers of electric vehicles in the form of an upfront reduction in the purchase price.
The government has also launched the PM E-DRIVE scheme to support electric mobility by providing assistance for the production of e-buses, electric three-wheelers, e-rickshaws, e-carts, and electric two-wheelers. The scheme also supports the production of e-trucks, e-ambulances, EV public charging stations, and the upgrading of testing agencies.
Furthermore, the government has rolled out production-linked incentive schemes for the auto sector and the manufacturing of Advanced Chemistry Cell. Electric vehicles are also covered under the PLI scheme for automobiles and auto components, which has a budgetary outlay of Rs 25,938 crore for a period of five years.
Mr. Goyal emphasized that there is an increasing awareness among people about the cost benefits of using EVs. He stated that electric mobility is ready to take off and does not require any further incentives or subsidies. He also mentioned that there are various options and ideas available to successfully market electric mobility.
The minister also discussed the issue of battery charging infrastructure and informed that the Petroleum and Explosive Safety Organization has released draft guidelines for the installation of multiple EV charging/battery swapping facilities at petrol pumps. The ministry has suggested making these guidelines self-monitored and self-certified to make it easier for setting up charging infrastructure.
The ministry also suggested encouraging resident welfare associations, commercial establishments, and office complexes to have electric charging equipment. Mr. Goyal added that the industry body of the sector can run a campaign to increase awareness about the benefits of EVs. He also proposed the idea of developing a common app or tool to help people find the nearest charging stations and other relevant information for the growth of the sector.
In terms of safety standards, the BIS has already notified standards for three- and four-wheelers and will soon notify the same for two-wheelers. Mr. Goyal mentioned that the standards will continue to evolve as the industry is constantly innovating and conducting R&D.
When asked about the government's stance on battery swapping, Mr. Goyal stated that it is a business case that should be left to the consumers. He further elaborated that it is the choice of the consumers and smart consumers will make smart choices. He also reiterated that the government has left it to the companies to decide their own business models.
The meeting was attended by officials from various departments and organizations, including the department of heavy industries, power, Niti Aayog, BIS, and DPIIT. Mr. Goyal concluded by stating that everyone was on the same page and that the industry should be allowed to flourish and grow on its own.
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