fold: 115 companies file applications under the PLI scheme for the automotive sector
Of the applicants, 13 are original equipment manufacturers (except 2W and 3W), 7 are 2W and 3W OEMs, 83 are component companies, 9 are new non-automotive investment companies (OEM) and 3 are new non-auto (component) investment companies.
The incentives are applicable under the Plan of Specified Sales of Advanced Automotive Technology (AAT) Products (Vehicles and Components) Made in India from April 1, 2022 for a period of 5 consecutive years.
“The Production Incentive Program (PLI) for Automotive and Automotive Components provides financial incentives to stimulate domestic manufacturing of advanced automotive technology products and attract investment in the automotive manufacturing value chain. Its main objectives are to overcome cost handicaps, create economies of scale and build a strong supply chain in the areas of advanced automotive technology products, ”the Ministry of Heavy Industries (MHI) said in a statement. communicated. The incentive structure aims to encourage the industry to make new investments in the local supply chain / deep localization of advanced automotive technology products.
The PLI program will also generate jobs. This program was designed to allow the automotive industry to move up the value chain towards products with higher added value.
The automotive PLI program was open to existing automotive companies as well as to new investors who are not currently in the automotive or automotive component manufacturing industry. The program has two components: the Champion OEM Incentive Program and the Champion Component Incentive Program. The Champion OEM Incentive program is a “linked to sales value” program applicable to battery electric vehicles and hydrogen fuel cell vehicles in all segments.
The Component Champion Incentive program is a “linked to sales value” program, applicable on vehicle components of advanced automotive technology, fully overturned (CKD) / semi overturned (SKD) kits, 2-wheel vehicle aggregates, 3 wheels, passenger vehicles, utility vehicles and tractor.
