Ford, Tata Motors, Suzuki, Hyundai, Kia and Mahindra & Mahindra are among the 20 companies that will be eligible for receiving incentives under the Production Linked Incentives Scheme for the automobile and auto components sector, the government said on Friday.
”The Scheme has been a huge success in terms of overwhelming response received with a proposed investment of Rs 45,016 crore from approved applicants,” the Heavy Industry Ministry stated.
As many as 20 applicants have been approved under the Champion Original Equipment Manufacturers (OEM) Incentives scheme.
These include Ashok Leyland, Eicher Motors, Ford India, Hyundai Motor India, Kia India, Mahindra & Mahindra, PCA Automobiles India, Pinnacle Mobility Solutions, Suzuki Motor Gujarat and Tata Motors Limited. This category does not include two-wheelers and three-wheelers.
Under incentives for two-wheeler and three-wheelers manufacturers, Bajaj Auto, Hero MotoCorp, Piaggio Vehicles and TVS Motor have been selected.
Firms selected under the new Non-Automotive Investor (OEM) category include Axis Clean Mobility, Booma Innovative Transport Solutions, Elest, Hop Electric Manufacturing, Ola Electric Technologies, and Powerhaul Vehicle, the Heavy Industry Ministry stated.
The incentive up to 18 per cent is to encourage industry to make fresh investments in indigenous supply chain of advanced automotive technology products of PLI Scheme for the auto sector to enable India to leapfrog to environmentally cleaner, sustainable, advanced and more efficient electric vehicles (EV) based system.
A total of 115 companies had filed their application under the PLI scheme for automobile and auto component industry which was notified on September 23, 2021.
Incentives are applicable under the scheme for determined sales of advanced automotive technology (AAT) products (vehicles and components) manufactured in India from 1st April 2022 onwards for a period of five consecutive years.
The government approved the scheme for enhancing India’s manufacturing capabilities for advanced automotive products with a budgetary outlay of Rs 25,938 crore.
Apart from Indian business groups, approved applicants for Champion OEM Incentive scheme include groups from countries such as Republic of Korea, USA, Japan, France, Italy, UK and Netherlands, the Heavy Industry Ministry stated.
The overwhelming response shows that industry has reposed its faith in India’s stellar progress as a world-class manufacturing destination which resonates strongly with the Prime Minister’s clarion call of AtmaNirbharBharat – a self-reliant India, it added.