India

An important step of the government for the manufacture of electric vehicles; 26,000 crore concession

Relieving the automotive sector, the Center has approved a new PLI scheme worth about Rs 26,000 crore, which will help boost the country’s production of electric vehicles and hydrogen fuel vehicles. The government estimates that the approved PLI scheme will help create more than 7 lakh jobs in the automotive sector. The announcement comes on the heels of a plan announced last year for the entire automotive industry, which includes vehicle manufacturing and its subsidiary units, valued at Rs 57,043 crore over a five-year period.

Last year, a Rs 57,000 crore concession scheme was announced for the entire auto sector. However, the Cabinet reduced the plan to Rs 25,938 crore to focus on hydrogen-fueled vehicles and electric vehicles produced in India only. The scheme will include electronic power steering system, automatic transmission assembly, sensors, sunroof, super-capacitor, adaptive front lighting, tire pressure monitoring system, automatic braking, tire pressure monitoring system and collision warning system.

Regarding the government’s approval of the scheme for the auto sector, Deloitte India partner Saurabh Kanchan said, “The aim is to promote new products such as electric vehicles and alternative fuels as well as advanced technologies like ADAS, ABS and AT. This is a welcome step. This will help them be localized, which will increase security and customer experience. ”

For the auto sector, the scheme will bring in new investment of Rs 42,500 crore in five years and increase production by more than Rs 2 lakh crore. For the automotive sector, the scheme will give a major boost to the production of electric vehicles. The industry will be encouraged to make new investments in the indigenous global supply chain of advanced automotive technology products.

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