6 out of 46 EVs are eligible for incentives under PLI scheme: Report

Out of 46 applicants, just six have fulfilled the requirements for the Government of India's Production Linked Incentives program, which aims to promote the country's domestic electric car manufacturing sector. With the majority of the vehicles, the sourcing of the domestic component was not adequate to get included in the PLI scheme. 

The update underlines the industry’s vulnerability towards imported components and the need to build a comprehensive ecosystem with a better supply chain and self-sufficiency. 

India’s PLI scheme mandates that at least 50 per cent of a car’s parts and components must be manufactured and sourced locally. However, the government has allowed some flexibility for EV batteries, as several critical inputs, especially rare earth minerals, are difficult to mine and refine domestically. In recent years, India has also been trying to cut its dependence on China, whose export controls have significantly disrupted local vehicle manufacturing.

Only five Tata Motors vehicles and one Mahindra vehicle have been found to qualify for benefits. These models include the Mahindra XEV 9E in addition to the Tata Nexon EV, Tiago EV, Tigor EV, Punch EV, and Harrier EV. Interestingly, neither the Mahindra BE 6 nor the Tata Curvv EV is eligible, Times of India has reported. 

According to the report, Hyundai, Kia, JSW MG Motor, Mercedes-Benz, BMW, Audi, Citroën, VinFast, Volvo, and Tesla were not included. In comparison to conventional combustion cars, there are still issues with market size and infrastructure, but localisation is probably going to expand over time.

The local EV battery market in India is growing, with several businesses hoping to manufacture and package their own lithium-ion cells.