As many as 75 companies have been given the nod for incentives under the PLI scheme for automobile and automotive components
Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s automotive component manufacturing industry, has congratulated the 75 automotive component manufacturers that have been approved for incentives under the PLI scheme for automobile and automotive components. A total of 92 automotive component manufacturers had applied for the scheme. The PLI scheme for automobile and automotive component industry for five years commencing FY 2022-23 has an outlay of Rs 26,000 crore. A total of 115 companies had filed their applications, of which 20 OEMs were accorded approval for incentives in February 2022.
The objectives of the scheme are to help the industry in overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of advanced automotive technologies (AAT). The scheme will facilitate the automotive industry to move up the value chain into higher value-added products, apart from generating employment. It will provide incentive of up to 18% to encourage the industry to make fresh investments in indigenous supply chain of AAT products.
Commenting on the approval of the list of component manufacturers for incentives under the PLI scheme, Sunjay J Kapur, ACMA President and Chairman, Sona Comstar, said, “Today’s announcement has indeed been a shot of encouragement for the entire automotive component industry and will be a catalyst in our transformational journey from a conventional industry to a mobility industry. We are indeed thankful to the government for its generous selection of companies that will benefit from the scheme. That apart, a slew of policy measures announced in the recent past including the extension of FAME 2 scheme, the PLI on ACC battery, policy initiative on battery swapping and energy as service, among others, will create a new paradigm of technological excellence in the automotive supply chain in India to make it globally competitive.”
Thanking the government for the initiative, Vinnie Mehta, Director General, ACMA, said, “The PLI scheme will not just help the component manufacturers become globally competitive but will provide a much-needed momentum to the ‘Make in India’ initiative. The scheme will lead to additional employment opportunities in India and provide an impetus to the industry to invest in cutting-edge technologies to stay relevant.
