The government is believed to be re-vamping the production-linked incentive (PLI) scheme for automobiles to support only electric vehicles. That’s the spark the sector needs. Painful as it may be for manufacturers of ICE vehicles, the industry must transition to electric mobility in the coming years. Along with OEMs, the ancillaries too must keep pace with clean technology because the supply chain needs to be indigenised. Without affordable components, the economics will be thrown out of gear.
The ICE automakers run very profitable businesses. But, the cozy oligopoly in the two-wheeler space will slowly shrink. The electric two-wheeler market might not be very big today with some half a dozen players, including some in the start-up space.
