No need for new incentives in EV ecosystem, existing subsidies to continue: Goyal

Commerce minister Piyush Goyal said on Friday existing subsidies for the electric vehicle (EV) ecosystem will continue for some time, citing broad consensus among the government, auto OEMs, and battery swapping companies that no new incentives or subsidies are required at this stage.

“EV manufacturing companies are benefiting from lower battery costs, a reduced overall cost of ownership, and the growing availability of charging infrastructure,” Goyal said.

The government aims to encourage residential welfare associations (RWAs), office complexes, and commercial establishments to set up their own charging infrastructure, further supporting the growth of the EV ecosystem, he said at a press conference on Startup Mahakumbh.

Industry concerns

On the issue of interoperability of EV batteries, industry players noted that it has been pushed to the backburner, as companies have varying levels of innovation and research and development. There is a reluctance among companies to share their advancements with competitors.

However, the minister clarified that it will be the companies themselves, rather than the government, that will decide their own models for operation.

At the meeting, Goyal was joined by officials from the Department of Heavy Industries, Department for Promotion of Industry and Internal Trade (DPIIT), Bureau of Indian Standards (BIS), and representatives from major companies such as Tata, TVS, and Mercedes-Benz India.

The meeting addressed certain issues, including the location of swapping stations, charging infrastructure, and the need for standards.

The minister also said auto and battery companies are expected to provide their comments on battery swapping by 6 January.

Additionally, the Petroleum and Explosives Safety Organisation (PESO) has also issued guidelines for the establishment of charging stations at gas stations, with a focus on self-regulation.

The government had rolled out an electric vehicle policy in March last year to attract global EV manufacturers to India. The incentives included in the policy were duty concessions for companies setting up manufacturing units in the country, provided they made a minimum investment of $500 million.

A stakeholder consultation meeting was held in April last year, with representatives from major manufacturers in India, including Maruti Suzuki, Hyundai, Tata, Mahindra, Kia, Skoda Auto Volkswagen India, and Renault.

Growth potential

The rapidly growing EV market in India is attracting global attention. According to the Economic Survey 2022-23, India’s electric vehicle market is expected to reach annual sales of 10 million units by 2030, creating 50 million direct and indirect jobs. Industry estimates indicate that total EV sales in India stood at around 1 million units in 2022.

The commerce minister also asked quick commerce players to comply with the law while providing their services. Referring to Blinkit’s ambulance service, Goyal said that his only request to the quick commerce company was that they meet the law of the land and ensure that all legal requirements are properly addressed.