NEW DELHI: The Central government chose 20 companies, including Tata Motors, Suzuki Motor Gujarat, Hyundai Motor India, and Mahindra & Mahindra, to participate in the 'Production Linked Incentive' (PLI) plan for automobiles and auto components, on Friday.

With a budgetary commitment of Rs 25,938 crore, the Centre authorised the PLI plan last year to improve the country's production capacity for 'Advanced Automotive Technology' (AAT) products.

Vehicles based on AATs include those that can run on both hydrogen and electricity.As a result, the proposal proposes financial incentives to encourage local AAT manufacturing and investment in the automotive manufacturing value chain. 

Its primary goals are overcoming cost constraints, achieving economies of scale, and establishing a stable supply chain for AAT goods. "A total of 115 firms applied under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India, which was notified on September 23, 2021," according to a statement from the Ministry of Heavy Industries.

The scheme provides incentives for certain sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from April 1, 2022, to April 1, 2024, for a period of five years.

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