The apex body representing India's auto component manufacturing industry, the Automotive Component Manufacturers Association of India (ACMA), facilitated the 75 auto component manufacturers (out of the 92 participated), approved for incentives under the PLI scheme for automobile and auto components.
Sunjay J Kapur, President, ACMA & Chairman, Sona Comstar, said, 'Today's announcement has indeed enthused the entire auto components industry and will be a catalyst in our transformational journey from a conventional industry to a mobility industry. We are indeed very thankful to the government for its generous selection of companies that will benefit from the scheme.
He further noted that the slew of policy measures announced in the recent past, including the extension of the FAME-2 scheme, the PLI on ACC battery, the policy initiative on battery swapping and energy as service, among others, will create a new paradigm of technological excellence in the automotive supply chain in India to make it globally competitive.
Vinnie Mehta, Director General, ACMA, said, 'The PLI scheme will not just help the component manufacturers become globally competitive but will provide a much-needed momentum to the 'Make in India' initiative. The scheme will lead to additional employment opportunities in India and provide an impetus to the industry to invest in cutting edge technologies to stay relevant.'
With 115 companies' participation in auto and auto components segments, the five-year PLI scheme commencing FY23 has an outlay of INR 26,000 crore.
A release from ACMA stated that the objectives of the scheme are helping the industry in overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of Advanced Automotive Technologies (AAT).
The scheme will facilitate the automotive industry to move up the value chain into higher value-added products, apart from generating employment. In addition, the scheme will provide an incentive of up to 18% to encourage the industry to make fresh investments in the indigenous supply chain of AAT products, the release added.