Mohit Yadav

I have had the opportunity to engage with several policy makers on the topic of Auto PLI excluding startups and I just can’t believe that they would think so! It cannot be emphasised enough - current framing of Auto PLI needs to stay closely aligned with the moment India is in. Over the last decade, the electric two wheeler ecosystem in India has evolved through contributions from both incumbents and electric first companies. Many of these startups invested early in product, software, power electronics, and localisation, often without the cushion of legacy scale. In doing so, they have pushed the boundaries and pulled in the competition to together build a competitive but a very vibrant and dynamic EV market. Today in many many markets it is the ‘new age EV companies’ that are industry leaders in not just innovation and tech, but in absolute volumes and market shares. Aligned with the PLI’s vision, it is these ‘startups and new age EV companies’ that are investing hundred, even thousands of crores in most new manufacturing capacities for EVs. For example at Ather we have already employed more than 4000 people directly and tens of thousands indirectly in our channels and supply chains. We have invested thousands of crores in RnD and direct capex and on top of this we are now investing 2000 crores in our new green field facility in Maharasthra. This is literally what PLI was hoping as an outcome and is being realized by a non-PLI holder, against all odds. And most crucially, they are doing all this while also investing heavily in R&D and domestic value addition (DVA). DVA benchmarks are similar across PLI and non PLI players so it would be wrong to assume that startups don’t lead DVA requirements. These companies have consistently pushed deeper on indigenous development, building capabilities that are at par with, and in some cases ahead of, the broader industry. An EV policy architecture that defines champions primarily through legacy scale, not even scale within the EV industry, can create an unintended imbalance. It places emerging EV manufacturers at a 13 to 16 percent cost disadvantage at a stage where they are continuing to invest heavily in capability building. Over time, this will influence how the market evolves, even as the goal is to build both scale and future ready capability. In this train of EV industry if legacy businesses are the bogeys, startups and new age companies are the engine. You cannot take the engine out of the equation and hope for the bogeys to move forward themselves. If India’s ambition is to lead in electric mobility, policy needs to recognise where innovation and capability are being built. Much of the work around indigenous platforms, battery systems, software, and domestic value addition is happening within electric first companies, and they will continue to set global benchmarks in design and technology. What is needed is calibration of PLI, not overhaul. More flexible eligibility, aligned with localisation and R&D intensity, can help ensure we are building long term capability, not just near term scale.

Talking about DC fast chargers is an amazing distraction. RWAs need more education about EVs otherwise they will keep thinking 'let's install 5 fast chargers worth 50L in a society of 500 houses'. Reality: get 15a sockets from your meter to your car parks. Costs 10k/installation