Govt announces no plans to increase EV subsidies
ECONOMY & POLICY

Govt announces no plans to increase EV subsidies

The policy environment for encouraging the production and sale of electric vehicles (EVs) in India seems to be in a state of uncertainty. Despite the industry's hopes for an extension of the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) subsidy scheme, the recent Union Budget, presented last month, did not include any new announcements regarding additional incentives for EV sales.

Furthermore, a scheme intended to boost domestic manufacturing of electric passenger cars has also been stalled since its hurried announcement in March, as its guidelines are still pending publication. Only one stakeholder meeting has occurred so far. The industry is already expressing dissatisfaction with this scheme, which supports domestic manufacturing and appears to align with the demands of certain global EV OEMs, including Tesla. Domestic OEMs have voiced objections to the concessions proposed for Tesla and other global manufacturers, leaving the matter unresolved.

Adding to the challenges facing the electric vehicle sector, the Ministry of Heavy Industries has firmly stated that there are no plans to increase subsidies for various categories of EVs. In response to a query about potential increases in subsidies to enhance EV adoption, Minister of State B S Varma indicated in a written reply to the Rajya Sabha that the Ministry is not considering any proposals to raise subsidies per unit for different types of e-vehicles. He attributed this decision to the absence of a slowdown in EV sales, noting that the current subsidies and incentives are deemed sufficient. According to government data, EV registrations have surged nearly tenfold over the past five years, growing from approximately 1.74 lakh in 2019-20 to 16.8 lakh in 2023-24.

The policy environment for encouraging the production and sale of electric vehicles (EVs) in India seems to be in a state of uncertainty. Despite the industry's hopes for an extension of the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) subsidy scheme, the recent Union Budget, presented last month, did not include any new announcements regarding additional incentives for EV sales. Furthermore, a scheme intended to boost domestic manufacturing of electric passenger cars has also been stalled since its hurried announcement in March, as its guidelines are still pending publication. Only one stakeholder meeting has occurred so far. The industry is already expressing dissatisfaction with this scheme, which supports domestic manufacturing and appears to align with the demands of certain global EV OEMs, including Tesla. Domestic OEMs have voiced objections to the concessions proposed for Tesla and other global manufacturers, leaving the matter unresolved. Adding to the challenges facing the electric vehicle sector, the Ministry of Heavy Industries has firmly stated that there are no plans to increase subsidies for various categories of EVs. In response to a query about potential increases in subsidies to enhance EV adoption, Minister of State B S Varma indicated in a written reply to the Rajya Sabha that the Ministry is not considering any proposals to raise subsidies per unit for different types of e-vehicles. He attributed this decision to the absence of a slowdown in EV sales, noting that the current subsidies and incentives are deemed sufficient. According to government data, EV registrations have surged nearly tenfold over the past five years, growing from approximately 1.74 lakh in 2019-20 to 16.8 lakh in 2023-24.

Next Story
Resources

Skyview by Empyrean is Making Benchmarks in the Indian Ropeway Industry

FIL Industries Private Limited, the parent company of Empyrean Skyview Projects that pioneered ropeway mobility solutions in India with Jammu’s Skyview Gondola, is currently developing the Dehradun-Mussoorie ropeway and is on track to complete Phase I by September 2026. The ropeway is set to be India’s longest passenger aerial monocable covering 5.8 km between the foothills of Dehradun in Purkulgam and MDDA taxi stand in the hills of Mussoorie in just under 20 minutes. The firm pioneered green mobility solutions in India with the development of the flagship Skyview Gondola in Jam..

Next Story
Technology

Creativity is for Humans, Productivity is for Robots!

On most construction sites, the rhythm of progress is measured by the clang of steel, the hum of machinery and the sweat of thousands. But increasingly, new sounds are entering the mix: the quiet efficiency of algorithms, the hum of drones overhead, and the precision of robotic arms at work. Behind the concrete and cables, an invisible force is taking hold: data. It is turning blueprints into living simulations, managing fleets of machines, and helping engineers make decisions before a single brick is laid. This is not the construction of tomorrow; it is the architecture of today – built on ..

Next Story
Infrastructure Urban

Bhartiya Urban Unveils ‘Bhartiya Converge’ GCC Enablement Platform

Bhartiya Urban has launched Bhartiya Converge, its latest business venture designed to become India’s premier platform for enabling Global Capability Centres (GCCs). The initiative offers an integrated ecosystem aimed at helping global clients gain a competitive edge in today’s rapidly evolving business environment. Focused on enhancing turnaround time and operational efficiencies, the company seeks to deliver better business outcomes powered by top-tier talent. Bhartiya Converge presents a customised and integrated suite of microservices that addresses the nuanced and evolving operational..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?