Incentives For EVs To Be Stopped? Piyush Goyal Believes So

Recently at a press conference for swappable battery technology, the Minister of Commerce and Industry, Piyush Goyal stated that the EV industry in India does not need newer incentives and subsidies. 

This is primarily because both the Government and manufacturers have realised that the EV industry in the country has reached a maturity level where it can sustain itself. So, once the current ₹10,900-crore PM E-Drive subsidy scheme expires on March 31, 2026, there might not be any incentive scheme for electric cars and bikes at all. 

Goyal further pointed out how different manufacturers have developed sustainable business models that eliminate the need for continued subsidies. The minister was in all probability referring to MG Motors’ and Lectrix’ Battery-As-A-Service model, wherein both manufacturers are retailing electric cars and scooters without the battery at a very affordable price. 

He also highlighted that decreasing battery costs and favourable total cost of ownership metrics have made electric vehicles economically viable without additional government support. Plus when you factor in how the budget outlays from FAME to EMPS and subsequently to PM E-Drive have reduced over time – this strategic reduction demonstrates exactly what Piyush Goyal mentioned explicitly. EV brand have also launched cheaper variants of the products, especially in the two-wheeler industry to make their offerings more accessible even if subsidy is phased out. 

While direct purchase subsidies may be phasing out, the government continues to support the sector through its Production-Linked Incentive (PLI) scheme, focusing on boosting domestic manufacturing of advanced automotive technology products and attracting investments in the automotive manufacturing value chain.