Parliamentary panel pushes EV Iicentives; Ather, TVS, TMPV to benefit – Nomura
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According to a report by Nomura Research, the Parliamentary Standing Committee on Industry has proposed measures to accelerate electric vehicle (EV) adoption in India. In its 332nd report on the Ministry of Heavy Industries’ FY27 budget, the committee recommended extending PM E-DRIVE incentives for EV two-wheelers (2Ws) and three-wheelers (3Ws) until March 2028, alongside stricter timelines for deploying e-buses, e-trucks, and e-ambulances.
Nomura highlighted that adoption under the PM E-DRIVE scheme has been concentrated in 2Ws and 3Ws, while segments such as electric buses and commercial EVs remain underpenetrated. The committee also suggested restoring original targets for e-rickshaws and e-carts to 1,10,596 units and implementing phased incentive tapering to sustain uptake.
Targeted EV 4W support and startup-friendly PLI reforms
The committee, as observed by Nomura Research, noted that EV four-wheeler penetration remains modest due to high upfront costs. It proposed introducing targeted consumer incentives for EV 4Ws, structured around battery capacity, vehicle efficiency, and price caps. Nomura analysts said this could improve ownership economics and benefit OEMs such as TMPV and MM, which have significant EV penetration.
On the production-linked incentive (PLI) front, Nomura pointed out that stringent eligibility criteria—requiring INR100bn in global revenue and Rs 30 billionn in fixed assets—could exclude emerging domestic EV startups. The committee recommended introducing flexible or differentiated thresholds, which could allow Ather Energy to access additional 13–18% incentives for product development and R&D.
Private charging and battery storage in focus
Nomura Research also highlighted recommendations to expand private sector participation in EV charging infrastructure through enhanced subsidies, and to improve utilisation of the PLI scheme for advanced chemistry cell (ACC) battery manufacturing with better monitoring and alignment to approved budgets.
Nomura analysts observed that if these recommendations are implemented, EV adoption in India could accelerate sharply. Current penetration as of FY26 YTD stands at 6.2% in 2Ws, 61.1% in 3Ws, 3.9% in passenger vehicles, and 5.9% in buses.