115 companies file application under PLI scheme for Automobile and Auto Component Industry

11 Jan 2022 , 11:23 AM

A total of 115 companies have filed their application under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India. Incentives are applicable under the scheme for determining sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from 1st April 2022 onwards for 5 consecutive years.

The government approved the scheme for the automobile and auto components industry last year for Enhancing India’s Manufacturing Capabilities for Advanced Automotive Products with a budgetary outlay of Rs25,938cr.

Category-wise – 13 companies filed their applications under Champion OEM (Except 2W & 3W); 7 companies under Champion OEM (2W & 3W); 9 companies under New Non-Automotive Investor (OEM) Company; 83 companies under Component Champion; and 3 companies under New Non-Automotive Investor (Component) Company.

The scheme proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology products and attract investments in the automotive manufacturing value chain. Its prime objectives include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of Advanced Automotive Technology products. It will also generate employment.

This scheme will facilitate the Automobile Industry to move up the value chain into higher value-added products.

The PLI scheme for the auto sector will incentivize high-value Advanced Automotive Technology vehicles and products. It will herald a new age in higher technology, more efficient and green automotive manufacturing. The PLI Scheme for the auto sector envisages overcoming the cost disabilities to the industry for manufacturing of Advanced Automotive Technology products in India. The incentive structure will encourage the industry to make fresh investments in indigenous supply chain/ deep localization of AdvancedAutomotive Technology products.