EV Companies Concur That Subsidy Will Not Be Necessary After Current Regime Concludes

Electric vehicle companies in India believe they won't need subsidies after the current regime ends, according to Commerce and Industry Minister Piyush Goyal. This was discussed during a meeting with stakeholders about battery charging and swapping infrastructure. The meeting, co-organised by CII and DPIIT, highlighted the potential growth of the battery swapping sector to USD 20 billion by 2030.

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Representatives from various sectors, including automobile and battery companies like Amara Raja Advanced Cell Technologies, SUN Mobility, and TVS Motor Company, attended the meeting. They emphasised the need for equal opportunities with fixed-battery EV manufacturers regarding subsidies. Goyal stated that companies can choose their business models freely, whether collaborating on battery swapping or selling vehicles with their own batteries.

Government Initiatives for Electric Vehicles

In March last year, the government introduced an electric vehicle policy to attract global EV manufacturers. This policy offers duty concessions to companies investing at least USD 500 million in setting up manufacturing units in India. Additionally, under the FAME-II scheme, plans are underway to install 10,763 public charging stations nationwide.

The FAME-India Scheme phase-II provides incentives for electric vehicle buyers through upfront price reductions. Another initiative, PM E-DRIVE, supports electric mobility by backing e-buses, electric three-wheelers, e-rickshaws, e-carts, and electric two-wheelers. E-trucks, e-ambulances, and public charging stations also receive support under this scheme.

Industry's Readiness and Future Plans

Goyal mentioned that awareness of the cost benefits of EVs is growing among people. He believes that the electric mobility sector is ready to progress without new incentives. Existing subsidies will continue for a while to help kickstart the EV ecosystem. He noted that various options exist for successfully marketing electric mobility.

Regarding battery charging infrastructure discussions, Goyal mentioned that PESO has released draft guidelines for installing multiple EV charging or battery swapping facilities at petrol pumps. The aim is to simplify setting up charging infrastructure at these locations. The ministry suggested making these guidelines self-monitored and self-certified.

Encouraging Innovation and Safety Standards

The ministry encourages resident welfare associations and commercial establishments to install electric charging equipment. Goyal stated that companies are prepared to invest in charging or swapping infrastructure. The industry body was also advised to run a campaign to raise awareness about EV benefits.

Safety standards were another focus area during discussions. The BIS has already notified standards for three- and four-wheelers and will soon do so for two-wheelers. Draft standards for two-wheelers have been released, with comments requested by January 6.

Goyal emphasised that companies should decide their business models independently. Whether they opt for battery swapping or selling vehicles with their own batteries is up to them. Different companies have varying levels of R&D and innovation.

Industry's Self-Sustaining Future

The minister noted that some companies might not want to share resources with others, while some may choose collaboration for mutual benefits. He stressed that it's not the government's role to micromanage but rather facilitate industry growth.

Officials from various departments like heavy industries, power, Niti Aayog, BIS, and DPIIT attended the meeting. Goyal concluded that allowing the industry to determine its path is crucial for its success.

In 2022, India's total EV sales reached around 10 lakh units. Tata Motors leads in passenger electric vehicles with models like Nexon EV range, Tiago EV, and Tigor EV in its portfolio.