Electric vehicle manufacturers’ body SMEV on Thursday said the production-linked incentive (PLI) scheme for auto and auto-components will build a self-sustaining framework for the e-mobility industry.
The Union Cabinet has on Wednesday approved a Rs 26,058 crore PLI scheme for auto, auto-components and drone industries to enhance India’s manufacturing capabilities.
The scheme will incentivise the emergence of advanced automotive technologies’ global supply chain in India, with incentives worth around Rs 26,000 crore to be provided to the industry over the next five years.
The scheme is especially beneficial for existing large players engaged in the automotive business and new entrants, as it will renew the interest of traditional players and motivate them to invest in the sector, Society of Manufacturers of Electric Vehicles (SMEV) Director-General Sohinder Gill said in a statement.
It is estimated that over the five years, the PLI scheme for the automobile and auto components industry will lead to a fresh investment of over Rs 42,500 crore, incremental production of over Rs 2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs. The move will strengthen the manufacturing ecosystem and build a self-sustaining framework for the e-mobility industry, Gill noted. However, he said, most of the existing small and medium OEMs engaged in the EV automotive business and new startups may not be able to qualify for the scheme and will have to operate under the existing norms. Policies supported by fiscal and non-fiscal incentives are the pillars that drive consumer sentiment and accelerate the adoption of new products in the market, he said.