Top auto companies get approval for PLI scheme

BL New Delhi Bureau | | Updated on: Feb 11, 2022

Axis Clean Mobility, Booma Innovative Transport Solutions, Hop Electric Manufacturing and Ola Electric among new non-automotive investors

Applications of the top auto companies such as Ashok Leyland, Eicher Motors, Hyundai Motor India, Kia India, Mahindra & Mahindra, Tata Motors, Hero MotoCorp, Bajaj Auto and TVS Motor have been approved by the government under the production linked incentive (PLI) scheme.

The scheme has received an overwhelming response with a proposed investment of ₹45,016 crore from approved applicants, the Ministry of Heavy Industries said in a statement on Friday.

Applications of other original equipment manufacturers (OEMs) including Suzuki Motor Gujarat, Ford India, PCA Automobiles India, Pinnacle Mobility Solutions and Piaggio Vehicles have also been approved by the government.

The Ministry of Heavy Industries said 20 applicants have been approved under the ‘Champion OEM Incentive Scheme’ under the PLI scheme.

“Incentive up to 18 per cent, to encourage industry to make fresh investments in indigenous supply chain of advanced automotive technology (AAT) products. The PLI scheme for automobile and auto components (₹25,938 crore) and PLI for ACC (₹18,100 crore), along with Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme (₹10,000 crore) will enable India to leapfrog to an environmentally cleaner, sustainable, advanced and more efficient electric vehicles (EVs) based system,” it added.

A total of 115 companies had filed applications under the PLI scheme for the automobile and auto component industry, which was notified on September 23 last year. The scheme was open for applications till January 9.

Incentives are applicable under the scheme for determined sales of AAT products (vehicles and components) manufactured in India from April 1 this year for a period of five consecutive years.

Some of the new non-automotive investors include Axis Clean Mobility, Booma Innovative Transport Solutions, Hop Electric Manufacturing, Ola Electric Technologies and Powerhaul Vehicle.

Companies such as Tata Motors and Ford Motor thanked the government for the opportunity to participate in the PLI scheme. “We are committed to shape India’s vehicular landscape with smart and sustainable mobility solutions, powered by new age technologies to address the evolving needs of both personal and commercial mobility, and this opportunity will help us drive this with even greater vigour,” a Tata Motors spokesperson said.

Ford Motor, which has stopped manufacturing for the Indian market, said as Ford leads customers through the global electric-vehicle revolution, it is “exploring the possibility of using a plant in India as an export base for EV manufacturing”.

Published on February 11, 2022
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