Kinetic Green CEO Sulajja Firodia Motwani Advocates for Graded PLI 2.0 to Support Smaller EV Players
Sulajja Firodia Motwani, the founder and CEO of Kinetic Green, has called for a revised version of India’s Performance Linked Incentive (PLI) scheme to better serve smaller electric vehicle (EV) players in the country. Her proposal for PLi 2.0 advocates for a more inclusive and graded approach that would allow startups and smaller manufacturers to access the same support offered to larger industry players. This move, according to Motwani, would not only stimulate innovation in the EV ecosystem but also help in maintaining a competitive and diversified market.
The Need for Graded Incentives
When the PLI 1.0 scheme was launched, it was designed to encourage the development and manufacturing of larger EVs by incentivizing established players in the market. However, Motwani points out that the scheme’s focus on large companies has left out smaller EV manufacturers and startups, who are just as critical to the future of India’s EV ecosystem. These smaller players often face challenges related to capital, infrastructure, and market access, which can hinder their ability to grow and compete with larger companies.
In her pitch for PLI 2.0, Motwani suggests that a graded incentive structure could be introduced to address this gap. A scaled approach, based on a company’s size and the specific needs of the startups, could ensure that smaller players are not sidelined. Such a structure would encourage innovation and increase the participation of smaller manufacturers in the electric mobility transition, which is essential for a balanced and sustainable EV ecosystem.
Addressing the Challenges Facing India’s EV Sector
Motwani also addressed the challenges faced by the Indian EV industry. While the demand for EVs has been growing, she believes that it still requires a substantial push from both the government and the industry to reach its full potential. According to her, the Indian EV market remains in its early stages and will require continued support for demand generation in order to compete with the more established markets globally.
Motwani expressed concern that without an ongoing push for smaller companies, the Indian EV ecosystem may experience a period of stagnation. The tapering off of incentives under the current PLI scheme could make it harder for smaller players to sustain themselves in the highly competitive industry, potentially leading to the dominance of larger companies that are already well-funded and have established production capabilities.
Protecting Local Manufacturers from Foreign Competition
Another significant concern raised by Motwani was the potential threat posed by foreign imports. As the EV sector becomes increasingly competitive, the market could be flooded with foreign-made vehicles, which may undermine the viability of local players. Motwani urged the government to take a closer look at tariff structures and import duties to protect the interests of Indian manufacturers and create an environment where local companies have a fair chance to thrive.
She emphasized that India should not just be a consumer of electric vehicles, but also a leading manufacturer in the global shift toward sustainable mobility. For this to happen, India needs to develop a robust domestic EV industry, supported by clear and sustained policy incentives.
Conclusion: India’s Role in Global EV Transformation
Sulajja Firodia Motwani’s advocacy for PLI 2.0 reflects a broader vision for India to lead the global electric vehicle transformation. By revising the PLI scheme to benefit a broader range of manufacturers, especially smaller players and startups, India can build a dynamic and competitive EV ecosystem that supports innovation and sustainability. Motwani’s call to action urges the government to recognize the critical role that smaller manufacturers play in shaping the future of electric mobility in India, and by extension, the world.
With the right support, India can not only become a key player in the EV market but also set the pace for the future of sustainable transportation worldwide.
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