India Inc gives thumbs up to PLI scheme

The over Rs 25,000 crore scheme is likely to boost production of components as well as give a push to the sector. “The government has taken a holistic approach to make India ‘Aatmanirbhar’, especially in technology areas, that will be relevant and important in future,” Tata Motors Passenger Vehicle Business Unit President Shailesh Chandra said.

ACMA President Sunjay Kapur said: “Thrust on incentivising new age technologies will facilitate creation of a state-of-the-art automotive value chain in the country and give a much-needed impetus to manufacturing of cutting edge automotive products in India.” Venu Srinivasan, Chairman, TVS Motor Company, said the revised focus of PLI scheme on alternative fuels, electric vehicles and utilisation of advanced technological innovation, will help the industry move faster towards the future technologies. “There is a sense of haste in developing these technologies in India and this scheme gives the right impetus to the industry to move rapidly in that direction. Any country which aspires to lead in a particular sector needs government support and this scheme aims to do just that in the future mobility space. The pandemic has taught us the essence of Aatmanirbharta in every aspect possible. Hence, this is a significant push by the government for its workforce, organisations (OEMs), and the consumers to seek competitive, diverse, and climate conscious mobility solutions and a progressive India.” Vipin Sondhi, MD & CEO, Ashok Leyland and VP, SIAM said “The scheme provides incentives for incremental performance by the OEMs, as manufacturers move towards making India a strong hub for Electric Mobility while also looking at harnessing the potential of Hydrogen energy for automotive applications. It will also support other advanced automotive technologies.

PLI has the potential to substantially increase volumes and will provide a huge opportunity for exports to grow. This scheme is being announced at an opportune time for India as the auto industry realigns its supply chain globally. India can therefore capitalise on this changing scenario, to become an integral manufacturing base for the world.” EY India Tax Partner, Automotive sector Saurabh Agarwal said: “The beneficiaries in the PLI scheme for auto sector are likely to be 10 vehicle manufacturers, 50 auto-component manufactures, and 5 new non-automotive investors planning to enter into the automotive sector.”