KATHMANDU: India’s electric vehicle industry is still heavily dependent on imported parts, mainly from China, and most models do not meet the government’s localization rules under the Production-Linked Incentive (PLI) scheme.
A Times of India report shows that only six out of 46 EV models sold in the country about 13 percent, qualify for PLI benefits.
Industry officials say nearly 87 percent of EVs fail to reach the required domestic value-addition level. Key components such as battery cells, motors, magnets and semiconductor parts continue to be imported from China and Taiwan.
The PLI policy, introduced in 2021, requires at least 50 percent localization, or 40 percent excluding battery cells, to receive incentives.
The government has approved only five Tata models, Punch EV, Nexon EV, Harrier EV, Tiago EV and Tigor EV and one Mahindra model, the XEV9E.
Major brands like JSW MG, BMW, Mercedes-Benz, Hyundai, Kia, Citroën, VinFast, Volvo, Tesla and Audi still use more than 60 percent imported parts.
Even new models from Tata and Mahindra, including the Curvv EV and Mahindra BE.6, have not met localization targets.
Automakers say India’s EV supply chain is still developing and local sourcing remains limited. Low EV sales also make it difficult for suppliers to invest in local manufacturing. A PwC study notes that batteries, motors, power electronics and software, which account for most of an EV’s cost have very little domestic production.
The PLI plan aims to build 50 GWh of battery capacity with higher value addition, but experts warn progress will be slow due to high investment needs and complex technology. With EVs now making up nearly 5 percent of India’s car market, pressure is growing to strengthen local manufacturing.
