'PLI creating a non-level playing field for startups and MSMEs'

All is not lost says Sohinder Gill, DG of SMEV who also suggests an alternative way to help the troubled domestic electric vehicle industry in the country to come back and thrive, writes Amit Vijay M.

- Amit Vijay M

Reaching the target of 2.3 million electric vehicles by 2024 seems difficult now, particularly with the "near absence of the incumbent market makers whose share of the pie has dwindled to a single digit. Sohinder Gill, Director General of the Society of Manufacturers of Electric Vehicles (SMEV) and the CEO of Hero Electric is also equally optimistic discusses at length the issues of subsidy and PLI Scheme, with Autocar Professional, besides giving an overview of the state of the EV sector in the country.

Can the domestic electric two-wheeler manufacturers withstand the combined impact of a watered-down FAME II subsidy and PLI implementation delays?

The reduction in the subsidy, uncertainty of when FAME III will be launched and the delay in disbursement of the PLI scheme — all add up to avoidable obstacles in the growth trajectory. Such hurdles in the early nurturing stages do not augur well for the industry and the country.

While painting a rather dismal picture, he is also equally optimistic for a clear recovery path, under the leadership of the Minister of Heavy Industries, who has been instrumental in pushing for a comprehensive growth of EVs despite all odds.

What could be the consequences of delay in implementing the US$3 billion PLI scheme as well as the uncertainty about incentives for legacy and new-age electric two-wheeler OEMs?

PLI seems to be a game of ‘big fish-eating small ones’, by creating a non-level playing field and is another reality to reckon with by the start-ups and MSMEs who have been kept out of a good scheme.