Made in India EVs Score Low on PLI Scheme; China’s Supply Chain Dominance Unveiled

WOWLY- Your AI Agent Apr 02, 2026 1,050 Views

Only 13% of India’s EV models qualify for the PLI scheme, with Tata Motors and Mahindra leading the way. Heavy reliance on Chinese imports of batteries and semiconductors is limiting domestic value addition. Experts stress urgent supply chain reforms to achieve India’s EV self-reliance and reduce vulnerability to global disruptions

Out of 46 electric vehicle (EV) models sold in India, only six—around 13%—meet the government’s Production-Linked Incentive (PLI) scheme criteria. Heavy reliance on Chinese imports of batteries, semiconductors, and magnets is undermining domestic value addition, raising concerns about India’s EV self-reliance goals.

India’s electric vehicle sector, touted as a cornerstone of the country’s green mobility mission, faces a sobering reality: just 13% of EVs manufactured in India qualify for government incentives under the PLI scheme. According to reports, only six models—five from Tata Motors and one from Mahindra—passed the eligibility test, while the remaining 40 models failed due to excessive imported content.

Key Highlights

PLI Criteria: To qualify, EVs must have at least 50% domestic value addition (DVA). With a relaxation for battery cells, the threshold drops to 40%, but most manufacturers still fall short.

China Dependency: The majority of EV makers rely on Chinese imports for critical components such as semiconductors, battery cells, and magnets. This dependence has left India vulnerable to supply chain disruptions and geopolitical risks.

Industry Impact: Companies like Hyundai, VinFast, and Tesla, despite their presence in India, are unable to meet the DVA requirements, limiting their access to government subsidies.

Policy Push: The Ministry of Heavy Industries (MHI) administers the scheme, aiming to boost local manufacturing and reduce import reliance. However, the current figures highlight the gap between policy intent and industry readiness.

Domestic Champions: Tata Motors and Mahindra stand out as the only automakers meeting the criteria, underscoring their stronger localization strategies compared to global competitors.

Broader Context

The findings underscore the urgent need for India to strengthen its EV supply chain. While demand for electric mobility is rising, the lack of indigenous manufacturing capacity in key areas threatens India’s ambition to become a global EV hub. Analysts warn that unless India accelerates domestic production of batteries and semiconductors, the country’s EV revolution could remain tethered to China’s industrial ecosystem.

The government’s PLI scheme, alongside initiatives like PM e-DRIVE, is designed to incentivize local production. Yet, the low qualification rate reveals structural challenges that must be addressed through investment in R&D, supply chain diversification, and strategic partnerships.

Sources: Economic Times, Times of India

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