India’s automotive sector, which has been experiencing challenges with a slowdown in electric vehicle (EV) demand, is set to see a significant boost. According to Sachin Mahajan, Chairperson of the Federation of Automobile Dealers Associations (FADA) Maharashtra, discussions with Union Commerce & Industry Minister Piyush Goyal and Union Minister of State for Social Justice & Empowerment Ramdas Athawale have led to a forecast of nearly 200,000 new EVs over the next two years.
Athawale has approved the PM Solar2EV Project for Social Justice, which is expected to drive demand for about 200,000 electric vehicles through various social justice initiatives. These include electric two-wheelers, three-wheelers, fleet passenger electric cars, light electric trucks, and buses. Launched in February 2024 by the Ministry of Social Justice, the Solar2EV initiative is poised to make substantial progress following a joint meeting led by Commerce & Industry Minister Piyush Goyal and Ramdas Athawale.
Mahajan noted that officials from the Small Industries Development Bank of India (SIDBI) are enthusiastic about introducing a new version of the Mission 50K-EV4ECO Mission. This mission aims to enhance the Electric Vehicle (EV) ecosystem in India by providing financing for EV purchases to Micro, Small, and Medium Enterprises (MSMEs) and Non-Banking Financial Companies (NBFCs), as a precursor to the SIDBI-World Bank’s EVOLVE program. SIDBI senior officials, including Dr Rajendra Prasad, Deputy General Manager, and Pawan Kumar Bharti, Lead- Electric Mobility & Assistant General Manager, highlighted the potential to develop a program similar to the EV4ECO scheme.
Mahajan from FADA praised the Modi 3.0 government for fostering a collaborative spirit among ministries to advance social justice through the Solar2EV project. This initiative aims to empower around 200,000 underprivileged youth from marginalized communities by creating entrepreneurial opportunities and enhancing youth and women’s participation in the economy.
Reflecting on the recent meeting, Mahajan from FADAexpressed his gratitude for participating in the discussion held in the new Parliament House’s Commerce & Industry Minister’s chamber. He commended the industry’s support, particularly from leading OEMs such as Kinetic Green, MG Motors, Mahindra & Mahindra, PMI Electromobility, and Sun Mobility, as a positive sign for the EV sector.
In addition to Mahajan and industry representatives, the meeting included Rajesh Menon, Director General of SIAM, Visakh MT from Kinetic Green, Dr Aanchal Jain from PMI Electromobility, Pamela Tikku from Mahindra Group, and senior officials from MG Motors and Autocar Professional. Speaking on the project, Athawale highlighted that the next phase of the electric revolution will be observed in agricultural markets, where light electric trucks could reduce delivery costs by 35-40% by carrying loads of 1-1.5 tonnes.
The Ministry of Social Justice is also working to align with various Maharashtra-based corporations, such as the Mahatma Phule Backward Class Corporation and Annabhau Sathe Corporation, to roll out programs aimed at creating job opportunities for differently abled individuals. Additionally, the Ministry is exploring a driver-ownership model in collaboration with e-commerce giants like Flipkart and Amazon to incorporate electric vehicles into their fleets, aligning with their commitment to reduce pollution and support environmental sustainability.
