“Auto PLI puts startups at cost disadvantage”

 EV startups have once again called for a tweaks to the auto production linked incentive (PLI) scheme , urging more flexible eligibility criteria that reward innovation rather than reinforcing an imbalance that leaves them at a cost disadvantage compared to legacy OEMs.

“An EV policy architecture that defines champions primarily through legacy scale, not even scale within the EV industry, can create an unintended imbalance. It places emerging EV manufacturers at a 13 to 16% cost disadvantage at a stage where they are continuing to invest heavily in capability building,” wrote Tarun Mehta, Co-founder & CEO at Ather Energy. 

His remarks come in response to a report in The Hindu that the government does not plan to introduce a separate auto PLI scheme for startups, citing their limited capital, market access, R&D capabilities.