Automotive Part Producers Affiliation of India (ACMA), the apex physique representing India’s auto part manufacturing business, congratulates the 75 auto part producers which have been accredited for incentives underneath the PLI scheme for car and auto elements. 92 auto part producers had utilized for the scheme.
The PLI scheme for the auto and auto part business, for 5 years, commencing FY 22-23 has an outlay of Rs. 26,000 crores. A complete of 115 firms, auto and auto elements, had filed their utility, of which 20 OEMs have been already accorded approval for incentives in February 2022.
The goals of the scheme are to assist the business in overcoming value disabilities, creating economies of scale and constructing a sturdy provide chain in areas of Superior Automotive Applied sciences (AAT). The scheme will facilitate the automotive business to maneuver up the worth chain into greater value-added merchandise, other than producing employment. The scheme will present an incentive of as much as 18 per cent, to encourage the business to make recent investments within the indigenous provide chain of AAT merchandise.
Commenting on the approval of the elements producers for incentives underneath the PLI scheme, Sunjay J Kapur, President ACMA & Chairman Sona Comstar mentioned, “At present’s announcement has certainly enthused your entire auto elements business and will likely be a catalyst in our transformational journey from a standard business to a mobility business. We’re certainly very grateful to the federal government for its beneficiant collection of firms that may profit from the scheme.”
He added, “That aside, a slew of coverage measures introduced within the latest previous together with the extension of FAME-2 scheme, the PLI on ACC battery, the coverage initiative on battery swapping and power as service, amongst others, will create a brand new paradigm of technological excellence within the automotive provide chain in India to make it globally aggressive.”
Thanking the Authorities for the initiative, Vinnie Mehta, Director Basic, ACMA, mentioned “The PLI scheme won’t simply assist the part producers turn into globally aggressive however will present much-needed momentum to the ‘Make in India’ initiative.
The scheme will result in extra employment alternatives in India and supply an impetus to the business to put money into leading edge applied sciences to remain related.”