Seventy-five applicants (along with their 56 subsidiaries) have been approved under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component. It is successful in attracting proposed investment of Rs 74,850 crore against the target investment estimate of Rs 42,500 crore over five years.
Companies approved under the ‘Component Champion Incentive Scheme’ included the likes of Maruti Suzuki, Hero MotoCorp, Bosch, Cummins, Bharat Forge, Denso, Lumax, Lucas TVS, BASF, Dana, Hella, Hero Cycles, Mahle, Minda and several others.
Twenty applicants were earlier approved under ‘Champion OEM Incentive Scheme’ including Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Kia India, Ashok Leyland, Bajaj Auto, TVS Motor and Hero Moto. A total of 115 companies had filed their application under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India which was notified on September 23, 2021. Out of which, five auto OEMs had applied for both the parts of the scheme.
Reacting to the response Union Heavy Industries Minister, Dr Mahendra Nath Pandey said, “India will surely take a huge leap towards cleaner, sustainable, advanced and more efficient electric vehicles (EV) based system.”
A proposed investment of Rs 29,834 crore is expected from approved applicants under Component Champion Incentive Scheme. Incentive upto 18% is aimed to encourage industry to make fresh investments in indigenous supply chain of Advanced Automotive Technology (AAT) products of PLI Scheme for Automotive Sector.
Commenting on the approval of the components manufacturers for incentives, Sunjay J Kapur, president, ACMA and chairman, Sona Comstar said, “The slew of policy measures announced in the recent past including the extension of FAME II scheme, the PLI on ACC battery, the policy initiative on battery swapping and energy as service will create a new paradigm of technological excellence in the automotive supply chain in India to make it globally competitive.”
Vinnie Mehta, director general, ACMA added, “The scheme will lead to additional employment opportunities in India and provide an impetus to the industry to invest in cutting edge technologies to stay relevant.”
The industry expects that the PLI scheme for Automobile and auto components and PLI for ACC along with FAME Scheme will enable India to leapfrog to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles based system.