EV makers bat for continuation of demand incentive scheme – ET Auto



They cautioned that EV sales may halve from the current levels if the government turns off the subsidy tap abruptly.

Electric vehicle sales in India are still in a fledgling stage and will need continued government support in the form of subsidy before the industry can firmly establish itself, said manufacturers of electric vehicles and other industry stakeholders during a panel discussion at CII Next Gen Mobility Show 2023.

The comments come amidst a likelihood of the government discontinuing the demand incentive scheme FAME (Faster Adoption and Manufacturing of Electric Vehicles) after its second phase comes to an end on March 31, 2024.

They cautioned that EV sales may halve from the current levels if the government turns off the subsidy tap abruptly.

“If the government decides to discontinue the subsidies, not one electric bus will be sold in the country,” Arvind Goyal, chairman of Tata Autocomp Systems, said at a panel discussion. EV sales will see a sharp fall and it will impact the component makers and other allied industries.

Sulajja Firodia Motwani, founder and chief executive of Kinetic Green, said a phased end to the subsidy one will help the industry. She also stressed on the need for a three- to five-year policy roadmap.

However, Nitin Seth, CEO-new mobility at Reliance Industries, advocated the need to bring down the cost of acquisition for the customers. According to him, it could be achieved by introducing EVs that can take removable and swappable batteries.

  • Published On Dec 16, 2023 at 07:52 AM IST

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EV makers bat for continuation of demand incentive scheme - ET Auto



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