Bharat Forge, Bosch India, CEAT, BHEL, and Ola Electric also on the list
Major automotive (auto) component manufacturers and automakers on Tuesday were shortlisted by the government for incentives under the production-linked incentive (PLI) scheme for the auto and auto components sector.
Maruti Suzuki India, Bharat Forge, Hero MotoCorp,, Bosch India, Ola Electric, BHEL are among the 75 firms approved for receiving incentives under PLI for the auto and auto components sector. CEAT and state-run Bharat Heavy Electricals, so far not engaged in auto component manufacturing, too, have been selected under the scheme.
The government expects 75 companies to invest close to Rs 29,834 crore under the Component Champion Incentive scheme. Together with the previously announced PLI scheme for automobiles, this is an investment of Rs 74,850 crore more than the government target investment of Rs 42,500 crore over a period of five years.
“We wanted to attract manufacturing of those components in the global supply chain of the auto sector not present in India. We have incentivised only those,” said Arun Goel, secretary at the Ministry of Heavy Industries, which conceptualised the scheme.
“The auto component industry and companies that have been selected under the scheme said that the incentive-based push will drive their localisation attempts and boost their export plans. The PLI scheme will help not just component manufacturers become globally competitive but will provide a much-needed impetus to the ‘Make in India’ initiative,” said Vinnie Mehta, director-general, Auto Component Manufacturers Association.
The scheme will lead to additional employment opportunities in India and provide a fillip to the industry to invest in cutting-edge technologies to stay relevant.
Global giant Bosch’s India subsidiary, which was also shortlisted, said the scheme will help its localisation plan.
“Bosch India has always played a very close jugalbandi in a completely technology (tech)-agnostic manner to work with the Government of India. We are setting aside around Rs 1,000 crore on advanced technologies for the next five to six years,” said Soumitra Bhattacharya, managing director, Bosch India.
Component manufacturers said the PLI scheme will also drive growth towards a cleaner tech push and incentivise large companies to invest more.
In 2022-23, major component manufacture Minda Corporation is looking to invest around 5 per cent of its revenue for the PLI scheme, said its Chairman and Group Chief Executive Officer Akash Minda, adding that most of the components the company manufactures — smart keys, immobilisers, and electric vehicle conversion products — are eligible under the scheme.
“It aligns perfectly with the company’s belief that the next level of change will not only be commodity-driven, but more tech-focused, and stronger and larger players may be able to capitalise on opportunities quicker,” said Sunil Bohra, chief financial officer, Minda Industries.