NEW DELHI: Nitin Gadkari said on Monday that he has no problem with the Finance Ministry and the Heavy Industry Ministry giving subsidies on electric vehicles (EVs). He, however, added that incentives may no longer be needed in two years as EVs will reach cost parity with internal combustion engine vehicles.
“I am not against subsidies for EVs. If the finance minister and industries minister want to provide more support, I have no issue with that,” said Gadkari at the 64th annual session of the Automotive Component Manufacturers Association of India (ACMA).
His fresh statement came days after he said there is no need for further subsidies to push EV adoption. This has raised questions among automakers who have been asking the Centre to launch the third phase of the FAME scheme. Gadkari criticised carmakers who are yet to launch EVs and said how automobile giants in India have missed the EV bus.
Speaking at the same event, Union Heavy Industries Minister H D Kumaraswamy assured EV makers that subsidies would continue. He said the third phase of Faster Adoption and Manufacturing of Electric (and Hybrid) (FAME) vehicles will be announced in two months.
Kumaraswamy said the Electric Mobility Promotion Scheme (EMPS) will be extended beyond its scheduled end in September 2024 and that it will continue until the launch of FAME-III. Minister for Commerce & Industry Piyush Goyal asked Indian auto component manufacturers to achieve an export target of $100 billion by 2030.
Electric car incentives
Gadkari said that incentives may no longer be needed in two years as electric vehicles will reach cost parity with internal combustion engine vehicles