Government to EV Makers: Prepare to Compete Without Subsidies

Image from- Tata

India's electric vehicle (EV) sector has seen remarkable growth in recent years, heavily fueled by government subsidies and support. However, a major transition is on the horizon. According to Heavy Industries Secretary Kamran Rizvi, these financial incentives will be phased out over the next four to five years. Speaking at a recent Society of Indian Automobile Manufacturers (SIAM) convention, Rizvi urged automakers to actively prepare for a future where the industry must sustain its momentum without relying on state financial backing.

To keep this growth on track, especially considering EVs now capture 50% of the three-wheeler market and 7% of the two-wheeler segment, auto companies need to step up their involvement in infrastructure. The government emphasized that automakers should no longer leave the responsibility of building charging networks entirely to third-party companies. To help with this, 60 high-priority corridors have been identified for electrification, and a ₹2,000 crore fund has been made available to manufacturers to ensure major highways are saturated with charging stations in the next two to three years.

Beyond physical infrastructure, the key to thriving in a post-subsidy market will be deep innovation. The Ministry is strongly encouraging vehicle and component manufacturers to significantly boost their Research and Development (R&D) investments. Instead of simply adopting existing global tech, the goal is for India to become a creator and inventor of electric mobility technology. With strong balance sheets, the auto industry is well-positioned to fund these innovations and build a self-reliant, future-ready EV ecosystem.

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