Global brokerage Nomura has highlighted potential beneficiaries in India’s electric vehicle (EV) ecosystem following a parliamentary panel’s recommendations to enhance incentives and relax norms under the Production Linked Incentive (PLI) scheme.
Stronger incentives are expected to accelerate EV adoption by lowering upfront costs for consumers, while easing PLI requirements could encourage broader participation and support capacity expansion across the industry.
Several companies across the EV value chain are positioned to benefit from these developments. Among automakers, Ather Energy, Mahindra and TVS Motor Company are likely to gain, while Tata Motors is identified in the passenger vehicle segment.
Component suppliers such as Sona BLW Precision Forgings and Uno Minda are expected to benefit from higher EV production due to their exposure to multiple manufacturers.
The parliamentary panel noted gaps in current PLI and EV incentive schemes, including slower-than-expected disbursement of incentives, delays in achieving production and job creation targets, and restrictive eligibility rules limiting participation by startups.
The combination of stronger incentives and relaxed PLI norms is anticipated to create a more supportive environment for EV growth in India, benefiting both manufacturers and suppliers across the ecosystem.
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