Need PLI 2.0 To Boost Smaller EV Players: Kinetic Green CEO

SUMMARY

Motwani said that while PLI 1.0 caters to “particular large EVs makers only”, there was a need for a “graded PLI 2.0 for startups and smaller players”

She also called on the government to take a relook at tariff and duty structures to prevent foreign imports from emerging as a “threat” to local EV players

Previously, advisor to the Prime Minister, Tarun Kapoor, also underscored the need for lowering GST on batteries and charging infrastructure to increase EV penetration

Electric vehicle (EV) maker Kinetic Green’s founder and CEO Sulajja Firodia Motwani has reportedly pitched for rolling out a graded second iteration of the performance-linked-incentive (PLI) scheme to boost smaller players in the ecosystem.

As per NDTV Profit, Motwani said that while PLI 1.0 caters to “particular large EVs makers only”, there was a need for a “graded PLI 2.0 for startups and smaller players”.

Noting that the EV demand in the country “still needs to be driven”, Motwani said that the homegrown EV ecosystem could be staring at a “slightly fragile window” when incentives taper off. She also called on the government to take a relook at tariff and duty structures to prevent foreign imports from emerging as a “threat” to local EV players.

The Kinetic Green founder also stressed that India should lead the EV “transformation” as a manufacturer, and not just as a consumer. The country has the “potential to shape the future of sustainable mobility globally, and the time to act is now”, Motwani reportedly added.

This comes a couple of days after she called on the Centre to reduce the goods and services tax (GST) on EV batteries to 5% and pitched for allocating higher budgets towards the INR 10,090 Cr PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme.

It is pertinent to note that EV batteries currently attract a levy of 18%.

Earlier this week, advisor to the Prime Minister, Tarun Kapoor, also reportedly highlighted the need for lowering GST on EV batteries and charging infrastructure to increase EV penetration in the country.

Earlier this month, even union commerce and industry minister Piyush Goyal urged enterprises and startups to ensure quick switch to electric mobility to achieve India’s goal of 100% electric vehicle nation.

This comes at a time when the government has actively rolled out a slew of sops and incentives to fuel the growth of the EV ecosystem in the country including PLIs as well as subsidies for end customers.

As per an Inc42 report, the homegrown EV space is projected to become a $110.74 Bn market by 2029.