Government of India Approves 75 Auto Firms for PLI Scheme

The government of India has approved about 75 auto component makers under the production linked incentive scheme. The list of companies approved for the PLI scheme includes Maruti Suzuki, Hero MotoCorp, Toyota, Motherson Sumi, Bosch, Mitsubishi Electric and Tata Autocomp.

PLI is a form of incentive from one entity to another such as from government to industry. It provides the domestic industry with an incentive to boost local production. The Auto-PLI program aims to give a push to advance automotive technology and electric vehicle manufacturing in India.

The government said that the PLI scheme for the auto sector aims to overcome the industry's cost barriers to manufacture advanced automotive technology products in India. The incentive structure encourages the industry to make new investments in the domestic global supply chain of advanced automotive technology products.

According to a report,  incentives for companies manufacturing components for safety, flex fuels, compressed natural gas (CNG), liquefied natural gas (LNG), emission control, passenger convenience, fuel efficiency, and sensors would be given incentives in the range of 8-13%. Wider incentives of 13-18% will be given to companies making components for hydrogen and electric vehicles.