20 applicants have been approved under the “Champion OEM Incentive Scheme” of the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry in India. The Ministry of Heavy Industries states that the scheme has been a huge success in terms of the overwhelming response received with a proposed investment of ₹ 45,016 crore from approved applicants. The incentive, which is up to 18 percent, is to encourage the industry to make fresh investments in the indigenous supply chain of Advanced Automotive Technology (AAT) products of the PLI Scheme for the automotive sector.
The PLI scheme for Automobile and auto components (₹25,938 crore) and PLI for ACC (₹18,100 crore) along with FAME Scheme (₹10,000 crore)to enable India to leapfrog to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system.
A total of 115 companies had filed their application under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India which was notified on September 23, 2021. The scheme was open for receiving applications till 23:59:59 hours IST on 9 January 2022. These incentives are applicable under the scheme for determining sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from April 1, 2022, onwards for a period of five consecutive years.
The Government approved the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India for Enhancing India’s Manufacturing Capabilities for Advanced Automotive Products (AAT) with a budgetary outlay of ₹25,938 crore. Its prime objectives include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of AAT products. It will also generate employment.
MHI has processed the applications received under Champion OEM Incentive scheme and 20 applicants (along with their 12 subsidiaries) have been approved under this category of the scheme. Applications for Component Champion Incentive scheme are being processed separately.
Here’s the list of applications approved under Champion OEM Incentive scheme:
Champion OEM (Except 2W & 3W):
1 Ashok Leyland Limited
2 Eicher Motors Limited
3 Ford India Private Limited
4 Hyundai Motor India Limited
5 Kia India Private Limited
6 Mahindra & Mahindra Ltd.
7 PCA Automobiles India Private Limited
8 Pinnacle Mobility Solutions Private Limited
9 Suzuki Motor Gujarat Private Limited
10 Tata Motors Limited
Champion OEM – 2W & 3W
1 Bajaj Auto Limited
2 Hero MotoCorp Ltd.
3 Piaggio Vehicles Private Limited
4 TVS Motor Company Limited
New Non-Automotive Investor (OEM)
1 Axis Clean Mobility Private Limited
2 Booma Innovative Transport Solutions Private Limited
3 Elest Private Limited
4 Hop Electric Manufacturing Private Limited
5 Ola Electric Technologies Private Limited
6 Powerhaul Vehicle Private Limited
The PLI Scheme for auto sector was open to existing automotive companies as well as new investors who are currently not in the automobile or auto component manufacturing business. The scheme has two components viz Champion OEM Incentive Scheme and Component Champion Incentive Scheme. The Champion OEM Incentive scheme is a ‘sales value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments. The Component Champion Incentive scheme is a ‘sales value linked’ scheme, applicable on Advanced Automotive Technology components of vehicles, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, Vehicle aggregates of two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and tractors, etc.
The PLI scheme for the Automobile and Auto Component Industry has been a huge success in terms of the applications received from local as well as globally headquartered groups engaged in/ proposing to manufacture Advanced Automotive Technology vehicles/ products. Apart from Indian business groups, approved applicants for the Champion OEM Incentive scheme include groups from countries such as Republic of Korea, USA, Japan, France, Italy, UK and Netherlands.
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