Green Bharat Summit: Strong economic case to include EVs in our fleet, says Piyush Goyal

Piyush Goyal at Green Bharat Summit.

Speaking at Network 18's Green Bharat Summit, Union Minister of Commerce and Industry, Piyush Goyal, strongly rooted for the idea of inclusion of electric vehicles in nation's fleet, underlining the strong economic case behind such a move.

However, the minister categorically said that government should not be mandating anything. Choice and the 'economics of market' should be the primary determinant of such a transition.

Reacting to a question on why EV's should be economically viable on its own and not be attractive due to government subsidies, Goyal said that the government has supported inclusion of EV's through a slew of schemes-- namely Fame 1, Fame 2 and the PLI scheme.

Speaking on the viability of hybrid vehicles, Goyal said his viewpoint on hybrid vehicles has changed over time. His comments come at a time when carmakers are upping the ante on electric vehicles (EVs).

“I was against hybrids, but I changed my mind,” the minister said. He reasoned that extensive research enabled him appreciate hybrids, especially plug-in versions, as practical transitional vehicles.

In Asia, particularly China, plug-in hybrids and range-extended EVs have been the primary drivers of market growth in 2024. European automakers, meanwhile, are delaying lower-cost EV launches until the EU's stricter CO₂ emission standards take effect in 2025.

At an CNBC-TV18 event in November, Goyal expressed his interest in bringing in global EV manufacturers, including Tesla, for setting up manufacturing operations in the country. “We will be very happy to welcome all companies from across the world to come and invest in India, to make electric vehicles .” reiterated Goyal.