Toyota, Tata, Motherson, TVS, Hero, Maruti Suzuki get approvals under PLI scheme

Maruti Suzuki, Hero MotoCorp, Bosch, Lucas-TVS, Mitsubishi Electric, Motherson Sumi, Tata Autocomp, Ola Electric and Toyota Kirloskar are among the 95 applicants approved under the production-linked incentive (PLI) scheme for automobile and auto component companies.

These manufacturers have together proposed an investment of ₹74,850 crore over five years against the target of ₹42,500 crore.

"This is a reflection of the ease of doing business that has been ushered due to the initiatives of the present government," minister for heavy industries Mahendra Nath Pandey told ET.


"The vision of Atmanirbhar Bharat and the progress towards it hinges on India's plans to integrate its skilled manpower with a global manufacturing hub in the country."

Pandey said that at least 10 foreign companies have made investment proposals under the scheme.

India for Bigger Role in Global Supply Chain
Plans by Bajaj Auto, Hero MotoCorp, Piaggio Vehicles, and TVS Motor have been approved for two-wheelers and three-wheelers.

The auto manufacturers also include South Korea's Hyundai and Kia apart from Mahindra and Mahindra, Tata Motors, Ashok Leyland, Ford India and Suzuki Motors Gujarat. Proposals by Ola Electric and Axis Clean Mobility have been approved under the non-automotive investor (OEM) category.

The total investment includes Rs 45,016 crore from vehicle manufacturers and Rs 29,834 crore from component makers, an official statement said. As many as115 companies had applied under the scheme.

The government had earlier approved 20 applicants along with 12 of their subsidiaries under the Champion OEM incentive scheme for a total of 95. The Component Champion incentive scheme is for part makers.

Nod to 2 new non-automative investors

Bharat Heavy Electricals and CEAT are two new non-automotive investors that have got approval under the scheme for making parts.

"The PLI scheme for the auto sector envisages overcoming the cost disabilities of the industry for the manufacture of advanced automotive technology products in India," the government had said while inviting applications. "The incentive structure will encourage industry to make fresh investments for the indigenous global supply chain of advanced automotive technology products. Further, this will increase India's share in global automotive trade."

The minimum investment cap for auto component companies over five years is Rs 250 crore and that for new-age part makers is Rs 500 crore. Apart from catering to the growing domestic market, there is increased traction for those seeking to participate in overseas supply chains as part of global automakers' China-plus strategy.

The PLI scheme was open to both existing automotive companies and new non-automotive companies. It will be implemented over five years starting FY23. An approved applicant is eligible for benefits for five consecutive financial years.