Twenty companies including Suzuki Motor Gujarat Private Ltd and Tata Motors Ltd will enjoy the benefits offered under the product linked incentive (PLI) scheme for the automotive industry and cumulatively invest ₹45,016 crore in the sector in the next five years.
A total of 115 companies had filed their application under the PLI scheme for the automobile and auto component industry in India which was notified on September 23, 2021. The scheme was open for receiving applications till January 9, 2022. Incentives are applicable under the scheme for determined sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from April 1, 2022 onwards for a period of five consecutive years.
The approved list of companies, released today consists of Ashok Leyland Limited, Eicher Motors Limited, Ford India Private Limited, Hyundai Motor India Limited, Kia India Private Limited, Mahindra & Mahindra Ltd., PCA Automobiles India Private Limited, Pinnacle Mobility Solutions Private Limited in the four wheeler and above category. The two wheeler and three wheeler approvals have gone to Bajaj Auto Limited, Hero MotoCorp Ltd., Piaggio Vehicles Private Limited and TVS Motor Company Limited. In the new non-automotive investor (OEM) segment, Axis Clean Mobility Private Limited, Booma Innovative Transport Solutions Private Limited, Elest Private Limited, Hop Electric Manufacturing Private Limited, Ola Electric Technologies Private Limited and Powerhaul Vehicle Private Limited found place in the list of approved applicants.
The PLI scheme for auto sector was open to existing automotive companies as well as new investors who are currently not in automobile or auto component manufacturing business. The scheme has two components viz Champion OEM Incentive Scheme and Component Champion Incentive Scheme. The Champion OEM Incentive scheme is a 'sales value linked' scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments. The Component Champion Incentive scheme is a 'sales value linked' scheme, applicable on Advanced Automotive Technology components of vehicles, completely knocked down (CKD)/ semi knocked down (SKD) kits, vehicle aggregates of two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and tractors, etc.
This PLI scheme for automotive sector (₹25,938 crore) along with the already launched PLI scheme for Advanced Chemistry Cell (ACC) (₹18,100 crore) and Faster Adaption of Manufacturing of Electric Vehicles(FAME) (₹10,000 crore) will enable India to leapfrog from traditional fossil fuel based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system, a ministry statement said.
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