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by
Seneca ESG
- February 16, 2022
The Indian government announced on February 11 that 20 companies among 115 applicants have qualified for incentives under India’s USD3.5bn Production Linked Incentive (PLI) Schemes to boost clean fuel vehicles and their components, as reported by Reuters on the same day. The 20 enterprises include Ford Motor [F:US], Suzuki Motor [7269:JP], Hyundai Motor [005380:KS], and India’s native automaker Tata Motors [TTMT:IN]. According to the Ministry of Heavy Industries, the PLI scheme has received proposals of investments amounting to USD5.97bn from the 20 approved applicants. The final list of companies eligible for incentives will be released later.
India’s federal cabinet last year approved a USD8bn PLI plan for the whole vehicle industry to boost domestic sales and exports, then revamped the plan by focusing incentives on electric and hydrogen fuel-power vehicles with a revised bonus amount of USD3.5bn. Automakers and components manufacturers qualified for the scheme can enjoy incentives ranging from 8% t0 18% of their sales values. The amended plan would coordinate with two other incentive plans that encourage technological development in fuel cells and electric cars, namely the Advanced Chemistry Cell (ACC) worth USD2.39bn, and the Faster Adaption of Manufacturing of Electric Vehicles (FAME) worth USD1.32bn. India hopes to leverage these schemes to attract investment in the auto manufacturing value chain, boost clean fuel cars to reduce oil import bills, and fulfill its commitment to cutting the carbon intensity of the nation’s economy by 45% before 2030.
Sources:
https://www.thehindu.com/business/20-auto-firms-get-approval-under-pli-scheme/article38414188.ece
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