Electric two-wheeler manufacturers welcome PLI program for automotive sector


The Indian government has authorized a 26,000 crore Production Incentive Program (PLI) for the automotive and drone sector. Of the Rs 26,058 crore, Rs 25,938 crore has been set for the automotive sector and Rs 120 crore for the drone sector, to boost the production of drones, electric vehicles and hydrogen vehicles. According to the announcement, auto companies that invest 2,000 crore for four-wheeled vehicles and 1,000 crore for two-wheelers for 5 years will be eligible for the government’s PLI program, said India’s Minister of Information and Communication. broadcasting, Anurag Thakur.

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The PLI program will benefit existing businesses as well as new investors looking to invest in the automotive and automotive component manufacturing sector. The focus will be clearly on electric vehicles.

The PLI program will benefit existing auto companies, as well as new investors who are not currently in the auto or auto component manufacturing industry. The government, while announcing the program, stressed the emphasis on more environmentally friendly vehicles. The Minister of Information and Broadcasting underlines the importance that the PLI program works in collaboration with the FAME II program (Faster Adoption and Manufacture of EVs), to meet all the requirements of the electric vehicle ecosystem. Naturally, the response from the automotive industry, especially those involved in the electric vehicle segment, has been encouraging.


Traditional manufacturers like TVS Motor Company plan to expand their range of electric vehicles in the coming years.

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“The revised focus of the PLI program on alternative fuels, electric vehicles and the use of advanced technological innovations will help the industry to move more rapidly towards future technologies. There is a sense of haste in the development of these technologies. in India and this program gives the right impetus to the industry to move quickly in that direction. Any country that aspires to lead in a particular sector needs the support of the government and this program aims to do just that in the future mobility space. The pandemic has taught us the essence of Aatmanirbharta in all possible aspects Therefore, this is a significant effort by the government to get its workforce, organizations (OEMs) and consumers to seek out competitive, diverse and climate-friendly mobility solutions and a progressive India, ”said Venu Srinivasan, President of TVS Motor Company.


Hero Electric chief executive Naveen Munjal praised the PLI program, saying it will both boost the electric vehicle industry and encourage the adoption of cleaner technologies.

Commenting on the announcement, Naveen Munjal, MD, Hero Electric said, “Recent announcements from the Indian government over the past few months have helped propel the electric vehicle industry to its next level. by various states have changed the game to bring down the prices of electric vehicles. With this announcement to allocate a total of 26,000 crore to encourage and promote the adoption of cleaner mobility and technologies, this industry is poised to grow exponentially from now on. spending on OEMs and other auto component manufacturing incentives that help make transportation cleaner will encourage investment and promote localization. initiative and looks forward to leading the new phase of electric mobility in the years to come. “


For two-wheeler manufacturers to benefit from the PLI program, the amount of new investment required will be 1,000 crore.

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“The program aims to improve India’s manufacturing capabilities and will boost the nascent electric vehicle industry. The PLI program will encourage our Indian manufacturers to expand their businesses. Promoting a clean environment and sustainable mobility will help us raise our targets by a higher percentage and expand operations into global markets. This decision will further strengthen this segment through the use of advanced technologies and faster infrastructure, “said Yatin Gupte, president and Managing Director of Wardwizard Innovations & Mobility Ltd.

For two-wheeler manufacturers to benefit from the program, the amount of new investment required will be 1,000 crore. And for original equipment automakers (OEMs) to benefit from the program, they must have a minimum turnover of 10,000 crore and will need to make new investments of ₹ 2,000 crore over a five-year period. to benefit from the program. Manufacturers of automotive components must have a global net worth of 1,000 crore and a clear business plan for investing in advanced automotive technologies to be eligible for the program. Analysts say this is a win-win situation and will also help keep costs down.

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“Yes, I think in the current market scenario it will help the two and three wheeler segment a lot, including existing OEMs, as they also make EVs. The program focused on OEMs and component manufacturers will also benefit component manufacturers. focusing on advanced automotive technology. In addition to encouraging development, it will also help reduce costs to be competitive in the global market, ”said V Sridhar of Grant Thornton.


For now, the PLI device seems to focus on emerging technologies, dealing more specifically with the EV sector. A total of 22 components were covered by the PLI automotive components program, including the flexible fuel kit, hydrogen fuel cell, hybrid energy storage systems, and electric vehicle parts, including ports load, transmission, electric vacuum pump and electric compressors.

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