The “Champion OEM Incentive Scheme” has approved 20 applicants

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The “Champion OEM Incentive Scheme” of a Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India has approved 20 companies. According to the Ministry of Heavy Industries, the scheme has been a huge success, with an overwhelming response and a proposed investment of 45,016 crores from approved applicants. The incentive, which can be up to 18 percent, is intended to encourage the industry to invest in the indigenous supply chain of Advanced Automotive Technology (AAT) products under the PLI Scheme for the automotive sector.

To enable India to transition to an environmentally cleaner, sustainable, advanced, and more efficient Electric Vehicles (EV) based system, the PLI scheme for automobiles and auto components (25,938 crores) and PLI for ACC (18,100 crores) were introduced, coupled with the FAME Scheme (10,000 crores).

The government announced the Rs 25,938 crore production-linked incentive (PLI) scheme for the automotive and auto component sector in September last year, and 115 businesses applied. There are 13 original equipment manufacturers (excluding 2- and 3-wheeler firms) and seven 2W and 3W OEMs among the applicants. There are 83 new non-automotive (OEM) investor firms, nine new non-automotive (component) investor companies, and three new non-automotive (component) investor companies among the remainder. Component Champion Incentive Scheme applications are being processed independently.

The car sector PLI program proposes financial incentives of up to 18% to increase local manufacturing of sophisticated automotive technology items and attract investments in the automotive industry value chain.

A total of 115 firms applied under India’s PLI plan for the car and auto component sector, which was announced on Sept 23, 2021.

Incentives are available for established sales of the product made in India beginning April 1, 2022, and continuing for five years.

A PLI Scheme for the Automotive Industry was available to current automotive companies as well as new investors who were not previously active inside the vehicle or auto component manufacturing business. The Champion OEM Incentive Scheme as well as the Component Champion Incentive Scheme are also part of the initiative.

Champion OEM (Except 2W & 3W)

Sl NoApplicant Name
1Ashok Leyland Limited
2Eicher Motors Limited
3Ford India Private Limited
4Hyundai Motor India Limited
5Kia India Private Limited
6Mahindra & Mahindra Ltd.
7PCA Automobiles India Private Limited
8Pinnacle Mobility Solutions Private Limited
9Suzuki Motor Gujarat Private Limited
10Tata Motors Limited

Champion OEM 2W & 3W

Sl NoApplicant Name
1Bajaj Auto Limited
2Hero MotoCorp Ltd.
3Piaggio Vehicles Private Limited
4TVS Motor Company Limited

New Non-Automotive Investor (OEM)

Sl NoApplicant Name
1Axis Clean Mobility Private Limited
2Booma Innovative Transport Solutions Private Limited
3Elest Private Limited
4Hop Electric Manufacturing Private Limited
5Ola Electric Technologies Private Limited
6Powerhaul Vehicle Private Limited

A Champion OEM Incentive plan is a sale value-related incentive program that applies to all segments of battery electric and hydrogen fuel cell vehicles. The Component Champion Incentive program is a sales value-linked program that applies to Advanced Automotive Technology vehicle components, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, and vehicle aggregates that include two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, and tractors, among other things.

The PLI conspire for the Automobile and Auto Component Industry has been a gigantic accomplishment as far as the applications got from the neighborhood as well as worldwide settled gatherings occupied with/proposing to make Advanced Automotive Technology vehicles/items. Aside from Indian business gatherings, endorsed candidates for the Champion OEM Incentive plan incorporate gatherings from nations like the Republic of Korea, USA, Japan, France, Italy, UK, and the Netherlands.