The government’s newly-minted productivity-linked incentive (PLI) scheme for the automotive sector has left pure-play electric two-wheeler firms, including start-ups, disappointed. The policy structured for the big players leaves start-ups out of its ambit, making it “non-inclusive”, rued executives at these companies.
The stiff criterion regarding annual revenues and fixed asset block for eligibility means only large existing auto companies or a new entrant with a financial muscle will benefit, they claimed.
Automobile original equipment manufacturers (OEMs) must have a minimum revenue of Rs 10,000 crore with a fixed asset block of Rs 3,000 crore to be eligible as automotive champions. Two-wheeler players also have to invest Rs 1,000 crore in five years.
