India's Auto Sector Flourishing Under PLI Scheme: A Push Towards Advanced Automotive Technology
Key Ideas
- India's auto sector has seen significant investments and sales growth under the Production-Linked Incentive (PLI) scheme, totaling Rs 20,715 crore and Rs 10,472 crore respectively.
- The PLI scheme focuses on boosting India's manufacturing capabilities in advanced automotive technology (AAT) by offering incentives for electric vehicles (EVs) and hydrogen fuel cell components.
- The scheme is expected to attract investments of Rs 42,500 crore, generate incremental sales of Rs 2,31,500 crore, and create 1.4 lakh jobs over the next five years, bolstering India's position in the global auto market.
- Complementary initiatives like the FAME-II Scheme and PM E-Drive are also playing a role in promoting green mobility by supporting EV manufacturing and infrastructure development.
India's auto sector is experiencing a positive trend driven by the Production-Linked Incentive (PLI) scheme, which has attracted significant investments and boosted incremental sales. The scheme, with a budget of Rs 25,938 crore, aims to strengthen India's manufacturing capabilities in advanced automotive technology by providing incentives for electric vehicles (EVs) and hydrogen fuel cell components. This initiative is expected to have a substantial impact, with estimated investments, incremental sales, and job creation figures set to elevate India's standing in the global auto market.
Furthermore, the PLI scheme is complemented by initiatives like the FAME-II Scheme and PM E-Drive, which focus on promoting green mobility through support for EV manufacturing and infrastructure development. With a push towards EV manufacturing and battery storage, including the establishment of Advance Chemistry Cell (ACC) battery facilities, India is poised to become a key player in electric mobility and advanced automotive manufacturing. These collective efforts are shaping the nation as a hub for sustainable transportation and technological innovation in the auto industry.