Good response on PM E-Drive, but EV industry needs to chip in more: Centre

The Indian EV industry needs to do more to increase sale of electric vehicles. Highlighting the success of the PM E-Drive scheme, which offers incentives to manufacturers, the Centre hopes the momentum to continue as India aims to achieve 30 per cent of overall vehicle sales to come from EVs by 2030. The Centre has also assured to consider the EV industry's urge to reconsider GST rates on EV components like batteries as well as EV charging rates to make electric vehicles more attractive for quicker adoption.

HD Kumaraswamy, Union Minister for Heavy Industries, said that innovation and research is required to reduce cost of electric vehicles in India. He also highlighted that the PM E-Drive scheme, launched from October this year as a replacement to the older FAME incentive scheme, has garnered good response in the first month itself.

PM E-Drive is central scheme aimed to incentivise EV manufacturers to boost sales across India. The scheme, which will remain effective till end of 2026, has an overall outlay of ₹10,900 crore to boost EV sales. Speaking at a FICCI conference, the minister said, “We hope to continue this momentum in years to come. The Ministry of Heavy Industries is leading the nationwide push for electric vehicle adoption, contributing to India's ambitious net zero target for 2070."

Kumaraswamy also urged EV makers to follow the new guidelines under the PM E-Drive to maximise benefits. His remarks are significant as the FAME-II scheme saw several EV makers go under the scanner for violating norms and facing probes. Some of the manufacturers have also been removed to enjoy central incentive schemes.

Centre to consider demand to lower GST on EV batteries

The Centre has also assured to look into the EV industry's demand to reduce GST rates on EV batteries and charging rates for customers. Tarun Kapoor, Advisor at the PMO, said the Centre will look into all aspects of EV taxation. He said, “In four-wheelers, what I think is that industry itself has to play a much, much larger role than the government because we need more products. We need better products, and we need more publicity." However, he said, the Centre cannot commit anything yet.

Kapoor also said that the Centre is working towards boosting EV charging infrastructure under the new PM-E Drive scheme. He added that the government is trying to encourage EV adoption by various central government departments and ministries and even trying to motivate states to do so.

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