India’s EV Sector Ready to Soar, No Need for New Subsidies: Piyush Goyal

Commerce Minister emphasizes EV readiness, highlights focus on safety standards, charging infrastructure, and consumer awareness.

New Delhi, January 3: India’s electric vehicle (EV) ecosystem is now “absolutely ready to fly,” and no additional incentives or subsidies are required for its growth, said Commerce Minister Piyush Goyal on Friday after a high-level meeting with officials from various ministries and key stakeholders of the EV industry.

The meeting focused on EV adoption, expansion strategies, technological advancements, and resolving concerns related to battery charging and swapping infrastructure.

Goyal highlighted the government’s existing measures, including reducing GST on electric vehicles from 12% to 5% and on chargers/charging stations from 18% to 5%, as key enablers driving the adoption of EVs in India.

“After the interaction, I can confidently say that the electric mobility sector today is absolutely ready to fly. They do not need newer incentives or subsidies. The current subsidies will continue for some more time, providing the necessary kick-start to the EV ecosystem. Moving from ICE engines to electric engines now makes good economic sense,” Goyal stated.

He also urged commercial establishments and office complexes to set up EV charging infrastructure and emphasized the importance of public awareness campaigns on the benefits of electric mobility.

“We want collective efforts from the industry to run campaigns highlighting the sustainability benefits of EVs and the role they play in combating urban pollution,” he added.

Safety standards for EVs were another focal point of the meeting. The Bureau of Indian Standards (BIS) has already notified safety standards for three-wheelers and four-wheelers, with draft standards for two-wheelers currently under review.

“The draft safety standards for two-wheelers have been released, and I’ve asked auto companies and battery-swapping providers to submit their comments by Monday so we can finalize the notification,” Goyal noted.

Regarding battery swapping, the minister stressed that the decision should rest with consumers. “It’s a choice for consumers, and smart consumers will make smart choices,” he said.

Battery swapping, an alternative to traditional EV charging, involves exchanging depleted batteries with fully charged ones, offering convenience and reducing vehicle downtime.

With ongoing efforts to address safety, infrastructure, and consumer education, India’s EV sector is poised for significant growth in the coming years.