The PLI schedule for the auto and auto parts industry, for five years beginning in FY 22-23, has an outlay of Rs. 26,000 crowns.
Automotive Component Manufacturers Association of India (ACMA), the highest body representing the Indian auto parts industry, congratulates the 75 auto parts manufacturers approved for incentives under the PLI auto and auto parts scheme. 92 car parts manufacturers had applied for the scheme.
The PLI schedule for the auto and auto parts industry, for five years beginning in FY 22-23, has an outlay of Rs. 26,000 crowns. A total of 115 companies, autos and auto parts, had submitted their applications, of which 20 OEMs have already received incentive approval as of February 2022.
The goals of the scheme are to help the industry overcome cost constraints, create economies of scale and build a robust Advanced Automotive Technologies (AAT) supply chain. The scheme will enable the automotive industry to move up the value chain towards higher value added products, in addition to job creation. The scheme will incentivize up to 18 percent to encourage industry to make new investments in the indigenous supply chain of AAT products.
Commenting on the component manufacturers’ approval of incentives under the PLI scheme, Sunjay J Kapur, ACMA President and Chairman Sona Comstar, said: “Today’s announcement has indeed excited the entire auto parts industry and will be a catalyst in our transformation journey from a conventional industry to a mobility industry, we are indeed very grateful to the government for the generous selection of companies that will benefit from the scheme.”
He added: “Apart from that, a slew of policies announced in the recent past, including the extension of the FAME-2 scheme, the PLI on ACC battery, the battery swap and energy as a service policy initiative, will launch a new paradigm of technological excellence in the automotive supply chain in India to make it globally competitive.”
Vinnie Mehta, director-general of ACMA, thanked the government for the initiative, saying: “The PLI scheme will not only help component manufacturers become competitive globally, but will give much-needed momentum to the ‘Make in India’ -initiative.
The scheme will create additional employment opportunities in India and give an impulse to the industry to invest in advanced technologies to stay relevant.”
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