Lumax, Asahi Glass in list of 83 auto PLI applications to Heavy Industries Ministry

Eighty three traditional component manufacturers have dominated the tally of 115 applications received by the Ministry of Heavy Industries under the production linked incentive (PLI) scheme for the automobile and auto component industry in India. 

Sources told Autocar Professional that Tier 1 suppliers including the likes of Lumax Industries, Asahi India Glass, Sona Comstar, JBM Auto and Minda Industries are the key established players to have applied for the scheme, for which the window was open until midnight of January 9.

More renowned players from the component sector include Anand Automotive, Bharat Forge, Bosch, Rane, Lucas-TVS, Hella, Sandhar Technologies and ZF.

The list also includes 13 applications categorised as Champion OEMs (non-two-wheeler and non-three-wheeler players) as well as nine new non-automotive OEM companies. 

Sources have also revealed that out of the seven Champion OEMs in the two- and three-wheeler category, two-wheeler players have been in the forefront, given the recent upsurge in electric mobility in the segment.

While the shortlisting process is expected to commence soon, final names are likely to be announced in a month. The incentives under the scheme are applicable for determined sales of Advanced Automotive Technology (AAT) products – both vehicles and components – manufactured in India from April 1, 2022, for five consecutive years. 

The fine print
The PLI scheme, which was approved in September 2021, is expected to give a fillip to domestic manufacturing of these AAT components and vehicles, and comes with a total outlay of Rs 25,938 crore. The sales-value-linked scheme is applicable on AAT components of vehicles, CKD / SKD kits, as well as vehicle aggregates of passenger vehicles, two-wheelers, three-wheelers, commercial vehicles and tractors among other vehicle classes.

The 22 specific components covered under the PLI Scheme include EV parts (charging ports, e-drivetrain, electric vacuum pump and e-compressor), flex-fuel kits, hydrogen fuel cells and hybrid energy storage systems. The IC-engine parts covered under PLI include exhaust, aftertreatment, ECU and fuel-injection systems.

For Champion OEMs, this sales-value-linked scheme will be applicable on BEVs and hydrogen fuel-cell vehicles across segments. 

“The PLI scheme for automobile and auto component industry has been a huge success in terms of the applications received from local as well as globally-headquartered groups engaged in or proposing to manufacture AAT vehicles or components,” the Ministry of Heavy Industries said in a statement. 

Thrust for local R&D
According to Vinnie Mehta, director general, Automotive Component Manufacturers Association of India (ACMA), “The scheme with so much focus on advanced technologies will catapult the Indian auto component industry into the league of global players. So far, it has been a built-to-print industry with very little local innovation and R&D. The scheme will drive the industry towards innovation as that's the underlying objective. It could be a gamechanger.”