What happens to EV growth once subsidy ends?

Penetration of electric vehicles (EVs) in India has been largely driven by subsidies, especially the Faster Adoption and Manufacturing of Hybrid and Electric Vehicle, or FAME, scheme under the National Electric Mobility Mission Plan, and subsidies offered by various states.

These sops have bridged the gap between the purchasing cost of a traditional, internal combustion engine (ICE) vehicle and that of an EV. From 60-65% of total outlay under FAME I, the incentives have risen to ~85% under FAME II. Once they exhaust — likely by fiscal 2024 — the Production Linked Incentive (PLI) scheme could drive EV adoption.