EV Makers Seek Better Financing, Payment Security from Government

Electric vehicle (EV) manufacturers and industry stakeholders have urged the Centre to introduce an enabling financing framework and a robust payment security mechanism to accelerate adoption of electric mobility and strengthen domestic manufacturing.

The demands were raised during a stakeholder consultation chaired by Union Steel and Heavy Industries Minister HD Kumaraswamy in Bengaluru on Wednesday. The meeting brought together manufacturers of electric buses, trucks, battery systems, advanced chemistry cells (ACC), charging equipment and other EV supply chain components, along with industry bodies, technology providers and testing agencies.

Industry representatives highlighted challenges facing the sector and sought policy support from the Ministry of Heavy Industries to scale up EV deployment. Financing constraints and payment security for electric buses and commercial EVs emerged as key concerns.

Stakeholders also stressed the need to expand charging infrastructure and improve charging accessibility, interoperability and network reliability to support the growing EV fleet.

They sought greater support from testing and certification agencies, particularly the Automotive Research Association of India (ARAI) and the International Centre for Automotive Technology (ICAT), for faster testing, homologation and certification of new technologies and components. Industry players said quicker approvals would help reduce turnaround times and improve ease of doing business.

Addressing the gathering, Kumaraswamy reiterated the Centre's commitment to Prime Minister Narendra Modi's target of making India a net-zero economy by 2070 and said electric mobility would play a critical role in the country's decarbonisation efforts.

The minister assured participants that the suggestions and recommendations made during the consultation would be examined by the ministry while formulating measures to strengthen the EV ecosystem.

Kumaraswamy also invited manufacturers of EV ancillaries, battery packs, ACC cells, charging equipment and thermal management systems to explore investment opportunities in Mandya, the district he represents in Lok Sabha.

According to a statement from the minister’s office, several industry participants responded positively to the proposal and expressed interest in evaluating the district for setting up manufacturing facilities. The minister said deeper localisation, stronger domestic supply chains and wider regional industrial development would be critical for building a globally competitive EV manufacturing ecosystem.