The Ministry of Heavy Industries received a proposed investment of more than Rs 45,000 cr from the approved applicants
The government of India has approved 20 applicants under the “Champion OEM Incentive Scheme” of the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry in India. Most of these automobile makers are also operating in the electric vehicle industry.
The Ministry of Heavy Industries noted that the scheme has been a huge success. It has received a proposed investment of more than Rs 45,000 cr from the approved applicants. This scheme is currently offering incentive of up to 18 per cent. A total of 115 companies had applied for the PLI scheme.
What’s really interesting to see is the fact that a lot of approved applicants are already present in the Electric Vehicle space. Please note that there is already a PLI for battery manufacturing applicable in the country.
Companies approved
Champion OEMs (Except 2W & 3W)
- Ashok Leyland Limited
- Eicher Motors Limited
- Ford India Private Limited
- Hyundai Motor India Limited
- Kia India Private Limited
- Mahindra & Mahindra Ltd.
- PCA Automobiles India Private Limited
- Pinnacle Mobility Solutions Private Limited
- Suzuki Motor Gujarat Private Limited
- Tata Motors
Champion OEM – 2W & 3W
- Bajaj Auto Limited
- Hero MotoCorp Ltd.
- Piaggio Vehicles Private Limited
- TVS Motor Company Limited
New Non-Automotive Investor (OEM)
- Axis Clean Mobility Private Limited
- Booma Innovative Transport Solutions Private Limited
- Elest Private Limited
- Hop Electric Manufacturing Private Limited
- Ola Electric Technologies Private Limited
- Powerhaul Vehicle Private Limited
The incentive structure, as per the Ministry, will encourage industry to make fresh investments for indigenous global supply chain of advanced automotive technology products. It is estimated that over a period of five years, the PLI Scheme for automobile and auto components industry will lead to fresh investments of over Rs 42,500 crores, incremental production of over Rs 2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs. Further this will increase India’s share in global automotive trade. The scheme for Automobile and auto components will be implemented over a period of five years starting from FY 2022-2023.
