PLI Scheme for auto sector to promote electric vehicles needs a relook

The government should have a relook at its recently announced automobile PLI scheme. Consider this: We Indians predominantly travel on two wheels. Two-wheelers accounted for 81 per cent of the domestic automobile market in 2019-20. In fact, India is the world’s largest market for two-wheelers.

Domestic market share in 2019-20:

Passenger Vehicles: 13%

Commercial Vehicles: 3%

Three-wheelers: 3%

Two-wheelers: 81%

According to SIAM data, while the share of two-wheelers in the domestic automobile market in 2019-20 was 81%, passenger vehicles accounted for 13%, and three-wheelers and commercial vehicles 3% each.

So, if we were looking to shift our vehicle fleet to EVs anytime soon, electric two-wheelers would have to play a large role.