EV sector confident in growth without subsidies after end of existing regime: Goyal

According to PTI, stakeholders at the meeting highlighted that the battery swapping sector is projected to grow to USD 20 billion by 2030. They emphasised that when it comes to subsidies and incentives, there is a need for a level-playing field with fixed-battery EV manufacturers.

Speaking to reporters after the meeting, Goyal said firms are allowed to adopt their own business models. He said, whether they wish to collaborate and share resources for battery swapping or sell EVs with their own batteries, is up to them.

“Everybody was unanimous in the room that once the existing subsidy regime comes to an end, none of them requires the subsidy to grow further…Each sector has one or the other model which makes it self-sustaining and does not call for further subsidies,” Goyal said when asked about the views of companies on subsidies.

Also Read : These five major car brands are confirmed for the 2025 Bharat Mobility Global Expo in India 

Leaders in the automotive, battery, charging, and swapping industries, including Amara Raja Advanced Cell Technologies, Gorogo, SUN Mobility, Bajaj Auto, TVS Motor Company, Ather Energy, Mahindra & Mahindra Ltd, and Hero MotoCorp, were among those present at the meeting.

The subsidy regime:

The government launched an electric vehicle policy in March of last year in an effort to draw foreign EV manufacturers to the nation. Under this policy, tariff reductions were granted to companies that established manufacturing facilities in the nation with a minimum expenditure of USD 500 million.

Under the FAME-II scheme, the government plans to set up 10,763 public charging stations nationwide.

An upfront discount on the purchase price of EVs is offered to customers of electric vehicles as one of the incentives under the FAME-India Scheme phase-II.

Another initiative, PM E-DRIVE, aims to promote electric mobility by supporting 24,79,120 electric two-wheelers, 1,10,596 e-rickshaws and e-carts, 2,05,392 electric three-wheelers (L5), and 14,028 e-buses. Additionally, the program supports EV public charging stations, e-trucks, e-ambulances, and testing agency upgrades.

Additionally, the government has launched production linked incentive (PLI) programs for the auto sector and Advanced Chemistry Cell (ACC) manufacturing. The PLI project, which was authorised in 2021 with a budgeted allocation of ₹25,938 crore for a five-year term, covers electric automobiles and auto components.

Also Read : GRAP stage 3 restrictions enforced back in Delhi-NCR after AQI crosses 375

According to Goyal, more and more individuals are growing aware of the financial advantages of driving an EV. He said, “the electric mobility today is absolutely ready and set to fly. They do not need newer incentives or subsidies, the existing subsidies are available for some more time and will help them give that appropriate kick start to the EV ecosystem…There are options and ideas available by which electric mobility can be successfully marketed.”

In response to a question on discussions around charging infrastructure, Goyal stated that the Petroleum and Explosive Safety Organization (PESO) has published draft rules for the installation of multiple EV charging/battery swapping facilities at gas pumps.

The goal is to facilitate the installation of charging infrastructure at gas stations and pumps. The ministry has further proposed making these guidelines self-monitored and self-certified in order for the person installing the charging station to self-regulate.

“Similarly, we want to encourage resident welfare associations, commercial establishments, office complexes to have electric charging equipment.

Charging, swapping or auto companies are ready to do the investments,” Goyal said.

Additionally, the ministry recommended that the industry body launch an awareness campaign on the advantages of owning EVs. As per PTI, Goyal additionally stated that they could consider creating a shared app or tool that would let people know where the closest charging stations are as well as other details needed for the sector’s growth.

Suggested watch: Global NCAP safety ratings 2024 | Crash tests of Indian cars

Safety standards:

“Another area we focused was on safety standards,” Goyal added.

Standards for two-wheelers will soon be announced by the Bureau of Indian Standards (BIS), which has already announced standards for three- and four-wheelers. The minister requested that the companies respond to the draft two-wheeler standards by January 6. According to Goyal, standards will continue to change because there is a lot of innovation and R&D in this sector.

“I think it’s a business case that should be left to consumers. It’s the choice of the consumers. Smart consumers will make smart choices,” said Goyal when asked whether the government has encouraged battery swapping.

“Again we have left it for companies to decide their own business model. So if companies want to go along with swapping, they can pool their resources, if they want to sell their own vehicle with their own battery (it’s up to them),” he said.

He added, since different companies have different levels of R&D and innovation, each company will have to choose their individual path.

“Some may not want to share their offerings with other companies, some may want to pool resources with others and leverage benefits…So we believe that it’s not the government’s job to micro-manage. The government has already played the role of facilitator,” he said.

The meeting was attended by representatives from the Department of Heavy Industries, Power, Niti Aayog, BIS, and DPIIT. There were also startups, automakers, two-, three-, and four-wheelers, passenger cars, lorries, buses, and battery swapping businesses. Participating in the discussions were representatives from Mercedes-Benz India, TVS, and Tata.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.

First Published Date: 04 Jan 2025, 10:43 AM IST