Suzuki, Hyundai, Tata Motors, TVS, Kia, Bajaj, Ola Among 20 Companies Selected For ₹25,938-crore PLI Scheme For Auto And Auto Components

Ford, Tata Motors, Suzuki, Hyundai, Kia, Bajaj, Ola and Mahindra & Mahindra are among the 20 companies that will be eligible for receiving incentives under the ₹25,938-crore 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.

"This PLI Scheme for automotive sector (₹25,938 crore) alongwith the already launched PLI scheme for Advanced Chemistry Cell (ACC) (₹18,100 crore) and Faster Adaption of Manufacturing of Electric Vehicles(FAME) (₹10,000 crore) will enable India to leapfrog from traditional fossil fuel based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system." the government statement said.

Also Read: Govt Notifies PLI Scheme For Automobile And Auto Components

(With inputs from PTI)