Automotive sector

115 companies submit an application for the automotive sector

The Center informed on Monday that a total of 115 companies have applied for the Production Linked Incentives (PLI) Scheme for the Automotive and Automotive Components Industry, which was notified on September 23, 2021.

The scheme was open for receipt of applications till 9th ​​January 2022. The incentives are applicable under the scheme for specified sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from 1st April 2022 for a period of 5 consecutive years, the Ministry of Heavy Industries said in a statement.

The government has approved the PLI program for automotive and automotive components industry in India to improve the manufacturing capabilities of the country for advanced automotive products with a budget outlay of 25,938 crores.

The PLI program for automobiles and automotive components offers financial incentives to stimulate domestic manufacturing of advanced automotive technology products and attract investment in the manufacturing value chain.

Its main objectives are to overcome cost handicaps, create economies of scale and build a strong supply chain. It will also create jobs. This scheme will allow the automotive industry to move up the value chain towards products with higher added value.

The PLI program for the automotive sector will encourage high-value vehicles and products. It envisions overcoming cost handicaps for the industry to manufacture advanced automotive technology products in India.

The program was open to existing automotive companies as well as new investors not currently in the automotive or automotive component manufacturing business.

The program has two components, namely the OEM Champion Incentive Program and the Component Champion Incentive Program. The Champion OEM Incentive program is a “sales value tied” program applicable to battery electric vehicles and hydrogen fuel cell vehicles in all segments.

The Component Champion Incentive program is a “sales value tied” program, applicable on advanced automotive technology vehicle components, knock down (CKD)/semi knocked down (SKD) kits, 2 wheel vehicle aggregates, 3 wheelers, passenger vehicles, utility vehicles and tractors, etc.

“This PLI Scheme for the automotive sector ( 25,938 crore) as well as the PLI program already launched for Advanced Chemistry Cell (ACC) ( 18,100 crore) and Faster Adaptation of Electric Vehicle Manufacturing (FAME) ( 10,000 crore) will enable India to shift from a traditional fossil fuel-based automobile transportation system to a more environmentally friendly, sustainable, advanced and efficient electric vehicle (EV)-based system,” the ministry said.

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