20 applicants have been approved under the “Champion OEM Incentive Scheme” of the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry in India.
The Ministry of Heavy Industries states that the scheme has been a huge success in terms of the overwhelming response received with a proposed investment of ₹ 45,016 crore from approved applicants. The incentive, which is up to 18 percent, is to encourage the industry to make fresh investments in the indigenous supply chain of Advanced Automotive Technology (AAT) products of the PLI Scheme for the automotive sector.
The PLI scheme for Automobile and auto components (₹25,938 crore) and PLI for ACC (₹18,100 crore) along with FAME Scheme (₹10,000 crore)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 Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India. These incentives are applicable under the scheme for determining sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from April 1, 2022, onwards for a period of five consecutive years.
The PLI Scheme for auto sector was open to existing automotive companies as well as new investors who are currently not in the automobile or auto component manufacturing business. The scheme has two components viz Champion OEM Incentive Scheme and Component Champion Incentive Scheme. The Champion OEM Incentive scheme is a ‘sales value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments. The Component Champion Incentive scheme is a ‘sales value linked’ scheme, applicable on Advanced Automotive Technology components of vehicles, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, Vehicle aggregates of two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and tractors, etc.
The OEM companies approved under the general vehicle category 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.
The companies approved under the 2 & 3 wheeler category include–Bajaj Auto, Hero MotoCorp, Piaggio Vehicles and TVS Motor Company.
Approval under the new Non-Automotive Investors were given to Axis Clean Mobility, Booma Innovative Transport Solutions, Elest, Hop Electric Manufacturing, Ola Electric Technologies and Powerhaul Vehicle.
