Auto industry welcomes Rs 26,000 crore PLI-scheme but flags some concerns
While the scheme will help reduce the cost of production of new products and technologies, companies still would have to evaluate several other factors including market demand for launching electric vehicles (EV) in the country,
Chairman R C Bhargava told ET.
“The production linked incentive scheme makes introduction of new products and technologies less risky. But companies still have to look at other factors, look at economics. It (PLI scheme) doesn’t change the other parameters,” said Bhargava, adding, “For introducing a product in the market, companies have to keep in mind many considerations. PLI will help reduce the cost of production. Cost of production is one factor but not the only one.”
Earlier last month the country’s largest carmaker had indicated that it will not enter the EV segment in the short term.
“We (Maruti Suzuki) have said that we will introduce an electric vehicle when there is an adequate market. The PLI scheme doesn’t create a market for products. Price is one factor, there are many factors which determine if there is a market for a product,” Bhargava said.
