The plan, which is likely to be announced early next week, is likely to be disappointing for top companies like maruti suzuki, Honda (Car and two wheeler), Toyota, Renault-Nissan, Skoda-VW And many other auto companies that get all their sales only from petrol, or diesel cars.
Domestic Tata Motors and Mahindra & Mahindra, which have been pursuing electric and other clean technologies for many years, will stand to benefit. Though the original plan was to have an allocation of Rs 57,000 crore over five years, starting from 2022-23, the scope of the scheme has now been refined, government sources told TOI.
The government believes that restricting incentives to greens only has prompted almost all companies to focus immediately on getting electricity and other sustainable technologies to market rather than waiting for a mega-customer transition. Will go
Apart from vehicles, the PLI scheme for automobiles will also provide benefits to auto components that aim to make vehicles green or smart. Categories that will be rewarded with incentives in the component industry will include hybrid energy storage systems, collision warning gear, EV parts, automatic braking and blind spot detection parts, advanced driver assistance systems and certain categories of sensors, sources told TOI. .
The original plan was seen as too broad, while the revised draft now focuses on the so-called new-age clean automobile, as part of the government’s goal to leapfrog into the next generation of green, connected and smart vehicles.
Top car companies like Maruti Suzuki can move forward due to change in government strategy Hyundai (it has only one imported electric corner), to provide an aggressive thrust for electric and other green technologies to cut.
Many of the existing players are currently seen as reluctant to switch to electric vehicles as they look to maximize the value of their investments in operational plants (producing petrol and diesel cars), allowing the government to People willing to make quick changes are motivated to be motivated. said.
The Center has argued that incentives for the two green technologies would lead to a significant increase in the share of hydrogen and battery-electric vehicles. With many international majors transitioning to electrics, the government expects what it believes will be a thriving business in the coming years. Government officials said several companies including SIAM and Ecma as well as industry bodies have been consulted before formalizing the plan.
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