Home » India’s EV Revolution Gains Momentum: 50 PLI Scheme Approvals to Boost Manufacturing
In a major boost to India’s electric vehicle (EV) sector, the government has approved 50 out of 74 applications under the Production Linked Incentive (PLI) scheme. This significant move is set to supercharge EV manufacturing, particularly benefiting prominent automakers like Bajaj Auto Ltd, Tata Motors, and Mahindra & Mahindra.
Key Approvals and Implications
1. Bajaj Auto’s Dominant Position: Bajaj Auto has secured approvals for all 13 of its applications, focusing on electric scooters and three-wheelers. This comprehensive approval will enable the company to significantly enhance its EV production capabilities, catering to the growing demand for eco-friendly two-wheelers and three-wheelers in India.
2. Mahindra and Tata Motors’ Advancements: Mahindra & Mahindra and Tata Motors have also made substantial gains, with 16 and 15 approvals respectively. These approvals will facilitate the development and production of a wide range of EV models, from passenger cars to commercial vehicles, further solidifying their positions in the Indian EV market.
PLI Scheme: A Game-Changer for EV Manufacturing
The PLI scheme, launched in September 2021, aims to foster domestic manufacturing of advanced automotive technology (AAT) products, including electric vehicles. The scheme offers incentives of up to 15% of the sales value, which will help bridge the cost gap between internal combustion engine (ICE) vehicles and EVs. This financial support is crucial for automakers as it partially offsets the high costs associated with EV production, making these vehicles more competitive in the market.
Government’s Commitment to Sustainable Transportation
The approval of these applications underscores the Indian government’s commitment to promoting cleaner and greener transportation. The PLI scheme is part of a broader strategy to achieve India’s ambitious decarbonization targets, including reducing carbon emissions in the energy sector by 50% and ensuring that electric vehicles account for at least 30% of new vehicle sales by 2030.
Industry Impact and Future Outlook
The approvals under the PLI scheme are expected to drive significant investments in the automotive sector, with a proposed investment of US$ 9 billion against the target estimate of US$ 5.1 billion over a period of five years. This influx of investment will not only enhance India’s manufacturing capabilities but also create a robust domestic and global supply chain for AAT products.
As India accelerates towards an electrified future, initiatives like the PLI scheme are pivotal in ensuring the country’s transition to sustainable mobility is both swift and sustainable. With major automakers now better equipped to produce and market EVs, consumers can look forward to a wider range of affordable and efficient electric vehicles in the coming years.