Summary:

The Union Cabinet approved the Production-Linked Incentive (PLI) Scheme for the automobile and auto components sector on September 15, 2021, with an outlay of ₹25,938 crore (US$ 3.02 billion). It aims to boost domestic manufacturing of Advanced Automotive Technology (AAT) products, encourage fresh investments, and create jobs. On November 9, 2021, 19 AAT vehicle categories and 103 components were notified under the scheme.

To support "Make in India," applicants must achieve 50% Domestic Value Addition (DVA) to qualify for incentives, reducing imports and building supply chains. By December 2024, ₹25,000 crore (US$ 2.91 billion) in investments were committed, boosting EV production by Tata Motors and Mahindra. The scheme has created jobs, enhanced EV and component sales, and integrated India’s automotive sector into global supply chains.

Source: IBEF

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