Commerce and Industry Minister Piyush Goyal stated that both the government and electric vehicle (EV) manufacturers believe there is no need for new subsidies for EVs. Goyal emphasized that the existing subsidies will continue for some time, providing enough support to help the EV ecosystem take off.
“Electric mobility is ready to thrive. There’s no need for additional incentives or subsidies. The current support measures will continue and will help accelerate the growth of the EV sector,” Goyal said during a media briefing.
His remarks followed a meeting with representatives from the EV manufacturing industry, as well as officials from the Ministry of Heavy Industries, Ministry of Power, and NITI Aayog. The discussions focused on battery swapping and EV charging infrastructure.
Currently, the government offers demand incentives for various electric vehicles—ranging from two-wheelers to buses and ambulances—under the Rs 10,900-crore PM E-Drive initiative. “The consensus in the room was clear: once the existing subsidies end, there will be no need for additional support. With the declining costs of batteries and the benefits of EV ownership, the sector can sustain itself without further subsidies,” Goyal explained.
As the government has transitioned from the FAME scheme to EMPS and now the PM E-Drive, subsidies per vehicle have been reduced, signaling a shift in the sector’s support structure. Senior officials have suggested that incentives for electric two- and three-wheelers may be phased out by 2026-27.
“Now, across most sectors, there are viable models and strategies to successfully promote electric mobility. Transitioning from internal combustion engine (ICE) vehicles to EVs makes strong economic sense,” Goyal added. Anish Shah, CEO of Mahindra Group, recently noted that the electric three-wheeler industry will likely be independent of government subsidies by 2025-26 due to its growing scale.
In addition to demand incentives, the government also supports EVs through a production-linked incentive (PLI) scheme aimed at boosting domestic manufacturing of advanced automotive technologies and attracting investments in the sector.
