C-DEP Report Finds Auto PLI Scheme Boosts Domestic E2W Production but Limits Export Growth

A report by the Centre for Domestic Economy Policy Research (C-DEP) finds that India's Auto PLI scheme for electric two-wheelers has boosted production scale among approved manufacturers but distorted market dynamics. While PLI-approved companies gained a 13-16% cost advantage and increased domestic market share, innovation-led non-PLI players faced declining growth and exclusion. Despite the scheme's export competitiveness goal, 77% of electric two-wheeler exports come from non-PLI models, highlighting a gap between policy intent and outcomes.