EV makers push for PLI inclusion in meeting with Heavy Industries minister

NEW DELHI, A group of electric vehicle manufacturers met Union Heavy Industries Minister H.D. Kumaraswamy in New Delhi on Wednesday and asked for the EV sector to be added to the production-linked incentive (PLI) scheme.

The delegation, led by the Society of Indian Automobile Manufacturers (SIAM), argued that extending PLI benefits to EVs would speed up local manufacturing and cut India's reliance on imported parts. The current PLI for the auto industry covers only advanced automotive technology products, not standard EVs or their components.

"The industry made a strong case for including all EV segments under the PLI framework," a person familiar with the meeting told The New Indian Express. The minister listened to the pitch but did not announce any decision, the source added.

What the industry wants

SIAM's delegation included executives from Tata Motors, Mahindra & Mahindra, Ola Electric, Bajaj Auto, and TVS Motor Company. They want the government to expand the PLI, currently worth about ₹26,000 crore, to cover electric two-wheelers, three-wheelers, passenger cars, buses, and the components that go into them.

Under the existing PLI for the auto sector, companies get incentives for making vehicles and parts that use advanced technologies like connected car features, sensors, and certain electronics. But standard EVs, and basic parts like motors, controllers, and battery packs, do not qualify. The industry says that gap holds back investment and slows down the shift to electric mobility.

India's EV market has grown fast. Sales of electric two-wheelers jumped 30% last year, and electric three-wheelers now make up more than half of new three-wheeler sales. But the share of EVs in the passenger car segment stays below 3%. Manufacturers say a PLI for all EVs would help bring costs down and push adoption higher.

Government's position

Kumaraswamy, who took charge of the Heavy Industries Ministry in June 2024, has said he wants to make India a hub for EV manufacturing. But the ministry has not yet signaled any change to the PLI rules. The scheme's current design aims to push companies to invest in cutting-edge technology, not just volume production.

Some officials worry that widening the PLI too much could dilute its impact. The scheme already covers 11 sectors, from solar panels to pharmaceuticals, and the government has limited fiscal space. The auto PLI alone has a budget outlay of ₹25,938 crore over five years.

Industry bodies argue that excluding EVs from the scheme puts Indian manufacturers at a disadvantage. China dominates the global EV supply chain, and Indian companies face high costs for imported cells and components. A PLI for EVs could help build a local supply chain and create jobs, they say.

No timeline has been set for a government decision. The minister asked the delegation to submit a detailed proposal, which SIAM plans to send within two weeks.