TL;DR
A new report suggests India's PLI scheme for two-wheelers is distorting the EV market, favoring large manufacturers and hindering innovation-led firms.
A recent report from the Centre for Digital Economy Policy Research indicates that India's Production Linked Incentive (PLI) scheme for two-wheelers may be distorting the electric vehicle (EV) market. While the scheme aims to boost domestic manufacturing, it appears to be inadvertently sidelining innovation-led manufacturers in favor of larger, established players.
The report highlights a significant decline in the sales growth rate for non-PLI entities, falling from 407% in FY22 to -33% in FY24 and -11% in FY25. This shift has led to a reordering of market leadership, potentially at the expense of companies driving innovation in the sector. The auto PLI scheme, launched in 2021, targets advanced automotive technology products like EVs and key components, requiring eligible manufacturers to meet substantial revenue and investment criteria.
