As per the latest reports, 115 companies filed applications under the PLI scheme for the auto component sector. While several European auto component manufacturers have applied for the scheme, several European carmakers, however, haven’t applied for the same yet.
The Indian Government’s Production Linked Incentive (PLI) Scheme has attracted some of the major vehicle original equipment manufacturers (OEMs) as many of them have applied for the same, as stated by government sources. The scheme which was notified on September 23, 2021, had its window opened for receiving applications till January 9 2022.
Furthermore, the sources have added that as of now at least 115 applications have been received so far with some of the applicants being companies like Ather Energy, Bajaj Auto, Hero Motocorp, Mahindra Group, MG Motor, Sona Comstar, Tata Motors, Toyota Auto Parts and TVS to name a few. To add to the roster of applicants, several non-automotive companies have contributed to the same.
As of now under the scheme, incentives are applicable for determining sales of advanced automotive technology products (vehicles and components) manufactured in India, from April 2022 onwards. The tenure of such incentives shall be for a period of 5 consecutive years.
The budgetary outline for the scheme is ₹25,938 Crore and aims at boosting domestic manufacturing of auto products. The scheme has been bifurcated into two major components- Champion OEM Incentive Scheme and Component Champion Incentive Scheme. While the former is a ‘sales value linked’ scheme applicable on battery EVs and hydrogen fuel cell vehicles, the latter is a sales value linked scheme applicable to the components of auto vehicles made using advanced automotive technology.
The report further stated that 83 applications have been received under the Component Champion Incentive Scheme, adding that it would take around a month for the government authorities to scrutinize applications before choosing the companies eligible for the incentives.