Taxpayer Funds to Support Only Zero-Emission EVs: NITI Aayog

NITI Aayog has clarified that government incentives will be directed exclusively towards zero-emission electric vehicles (EVs), not hybrid vehicles. India is actively working to become an EV manufacturing hub while reducing its dependency on China for critical materials.

A senior NITI Aayog official has announced that taxpayers' money will now be used solely to promote clean mobility solutions with zero tailpipe emissions, such as battery electric vehicles (BEVs). This decision rules out government subsidies or incentives for hybrid vehicles.

The government is also working on alternative technologies and strategies to reduce India's reliance on China for lithium and other essential raw materials required for EV production. Sudhendu Sinha, Programme Director for Electric Mobility and Transport at NITI Aayog, shared this update.

He said, "Currently, 16 out of 23 IITs in India are actively engaged in research on sustainable mobility, alternative battery chemistries, battery management systems, telematics, and electronics. Our vision is not just to be an EV user but to transform India into a leading EV manufacturing hub."

Sinha emphasized that while hybrid vehicles will remain available in the market and will not be penalized, government incentives funded by taxpayers should only be allocated to vehicles that do not pollute.

He added, "If India wants to become a global EV manufacturing center, we must lead in innovation and also control the critical supply chain. We need to master the entire manufacturing process to reduce dependency on other countries."

Citing Norway’s example, Sinha noted that the country made a decisive shift towards electric vehicles in 1995. Today, the majority of new car sales in Norway are electric. He also highlighted that India has undertaken significant GST reductions, not just on EVs but also on multiple EV components, to support the clean mobility transition. The government continues to introduce supportive policies to accelerate the adoption of electric vehicles in the country.