Auto PLI invites 76% higher investment than planned outlay, industry commits Rs 74850 crore investment
The government's much-desired PLI programme for the vehicle and auto component business has attracted 76% higher investment than the objective of Rs 42,500 (US$ 5.56 billion). Over the next five years, auto and component makers have proposed investing Rs 74,850 crore (US$ 9.79 billion) in the nation. While the 20 automakers who have been accepted for the plan have sought to invest Rs 45,016 crore (US$ 5.89 billion), the 75 component manufacturers who have been approved for the Component Champion Incentive Scheme have requested to contribute Rs 29,834 crore (US$ 3.9 billion).
Over a five-year period, auto component firms might invest up to Rs 250 crore (US$ 32.7 million), while new-age component companies could contribute up to Rs 500 crore (US$ 65.4 million). Apart from catering to the expanding local market, sourcing from India is gaining appeal as part of multinational automakers' China plus strategy. The Rs 25,938 crore (US$ 3.39 billion) PLI plan for the auto and component sector is aimed at assisting the industry in overcoming cost constraints, achieving economies of scale, and establishing a stable supply chain in the field of Advanced Automotive Technologies (AAT). The scheme would give an incentive of up to 18% to encourage companies to engage in the AAT supply chain on a local level.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.