Title: PLI-Auto Scheme: ₹25,219 cr investment, 38,186 jobs created
In a significant development for India’s automotive sector, companies under the Production Linked Incentive (PLI) Auto scheme have committed over ₹25,219 crore in capital investment by December 2024, including new production facilities and technology upgrades, creating 38,186 jobs, the government said on Thursday.
The PLI Auto scheme, launched by the government in 2021, aims to boost the production of automotive components and enhance the sector’s competitiveness in the global market. The scheme provides financial incentives to companies that invest in new production facilities, technology upgrades, and research and development (R&D) activities.
Notably, Tata Motors and Mahindra & Mahindra have pledged significant investments to boost their electric vehicle (EV) production capacity, according to the Ministry of Heavy Industries. Tata Motors has committed ₹4,000 crore towards the expansion of its EV business, while Mahindra & Mahindra has pledged ₹1,000 crore to increase its EV production capacity.
The PLI Auto scheme has seen significant interest from companies across the automotive value chain, including original equipment manufacturers (OEMs), component suppliers, and startups. The scheme has been designed to attract investments in areas such as EVs, hybrid vehicles, and advanced driver-assistance systems (ADAS).
The government’s move to provide financial incentives to companies under the PLI Auto scheme is expected to boost India’s automotive sector, which has been facing challenges due to global uncertainties, supply chain disruptions, and rising competition. The scheme is also expected to create new job opportunities, both directly and indirectly, and enhance the sector’s competitiveness in the global market.
India’s automotive sector has been a key driver of economic growth in the country, accounting for around 7% of the country’s GDP. The sector has been growing rapidly in recent years, driven by increasing demand for vehicles, investments in new technologies, and government initiatives to promote the sector.
The PLI Auto scheme is a part of the government’s broader efforts to promote the automotive sector and enhance its competitiveness in the global market. The government has also launched other initiatives, such as the National Electric Mobility Mission (NEMM) and the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, to promote the adoption of EVs and hybrid vehicles.
In conclusion, the PLI Auto scheme has received significant interest from companies across the automotive value chain, with over ₹25,219 crore in capital investment committed by December 2024. The scheme is expected to boost the production of automotive components, enhance the sector’s competitiveness in the global market, and create new job opportunities. The government’s move to provide financial incentives to companies under the PLI Auto scheme is expected to have a positive impact on India’s automotive sector, which has been facing challenges due to global uncertainties, supply chain disruptions, and rising competition.
