The Indian automotive industry is set to play a pivotal role in the country’s rise as the third-largest economy, stated Mahendra Nath Pandey, Minister for Heavy Industries, at the auto Production Linked Incentive (PLI) conclave in New Delhi. Emphasising the sector’s contribution, Pandey noted that the automobile industry, contributing 35% to the Gross Domestic Product (GDP), is well-positioned to drive India’s economic growth.

The Ministry of Heavy Industries is at the forefront of managing the Rs 25,938 crore PLI scheme for Automobile and Auto Components (PLI-AUTO Scheme). This initiative has already begun to yield results, with companies making investments and vehicle models receiving approvals to avail of the scheme benefits. The scheme has successfully attracted proposed investments amounting to Rs 67,690 crore, out of which Rs 13,037 crore was invested as of December 31, 2023.

A committee has been established to consider supporting new automobile components under the ongoing PLI scheme. This move is aimed at further bolstering the automotive sector’s growth.

Leading the charge under the PLI scheme are Mahindra & Mahindra, Tata Motors, and Ola Electric. These companies have been early movers in receiving Domestic Value Addition (DVA) certification for their Advanced Automotive Technology (AAT) products. Mahindra & Mahindra leads in the three-wheeler category, Tata Motors in both the four-wheeler and bus categories, and Ola Electric in the two-wheeler segment. In total, 115 companies submitted 120 applications under the PLI scheme, with 85 applicants approved, including 18 for the Champion OEM Incentive scheme and 67 for the Component Champion Incentive scheme. Additionally, two Auto OEM companies have been approved for both parts of the scheme.

The Indian automotive industry’s active participation in the PLI scheme, coupled with the government’s supportive measures, signals a robust phase of growth and innovation, positioning the country on a fast track to becoming the world’s third-largest economy.

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