The Economic Survey 2023-24, presented in Parliament on Monday, revealed that the production linked incentive scheme (PLI) for automobiles and auto components has attracted proposed investments of INR 67,690 crore. As of the end of March 2024, INR 14,043 crore has been invested. The scheme aims to boost employment, with 1.48 lakh jobs proposed and 28,884 jobs already created by March 31, 2024. So far, 85 applicants have received approval under the scheme.
The PLI scheme, with a budgetary outlay of INR 25,938 crore for the period from FY23 to FY27, is divided into two parts: the Champion OEM Incentive Scheme and the Component Champion Incentive Scheme. Additionally, the government approved the National Programme on Advanced Chemistry Cell (ACC) Battery Storage in May 2021, which has a budgetary outlay of INR 18,100 crore.
“While passenger vehicles quickly recovered, the recovery period for two-wheelers, three-wheelers, and commercial vehicles is longer,” the Economic Survey 2023-24 stated.
The growth in the value of domestic production and consumption of automotive parts moderated during FY20 to FY23 compared to the previous five years. The survey noted that in the first half of the last decade, passenger vehicles, including cars and utility vehicles, experienced significant growth, but the pandemic had a substantial impact on all segments of the automotive industry.
In FY24, India produced approximately 49 lakh passenger vehicles, 9.9 lakh three-wheelers, 214.7 lakh two-wheelers, and 10.7 lakh commercial vehicles.
