Tata, Suzuki, Mahindra along with 20 other companies win the auto PLI bid

The government announced that Ford, Tata Motors, Suzuki, Hyundai, Kia, and Mahindra & Mahindra will be among the 20 firms eligible for incentives under the Production Linked Incentives Scheme for the automobile and auto components sector.

"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.

Also read: Govt makes seatbelts mandatory for all cars carrying up to 8 passengers

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-wheeler 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 of up to 18 per cent is to encourage industry to make fresh investments in the 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 systems.

A total of 115 companies had filed their application under the PLI scheme for the automobile and auto component industry, which was notified on September 23, 2021.

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 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 the Champion OEM Incentive scheme include groups from countries such as the Republic of Korea, USA, Japan, France, Italy, UK and Netherlands, the Heavy Industry Ministry stated.

The overwhelming response shows that the 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. 

With inputs from PTI

Live TV