The government will announce the PLI program for the automotive sector, allocate Rs 57,000 cr

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Chennai: The government is supporting localization and reducing dependence on automotive imports by announcing a high-cost PLI program. “The heavy industries department is in the final stages of announcing the PLI program and the highest budget allocation of Rs 57,000 crore for the sector,” Heavy Industries Union Minister Mahendra Nath Pandey said during the 61st Annual Meeting of Automotive Component Manufacturers. Association (ACMA). The Minister has set an ambitious export and employment target for the auto components industry asking it to double its exports to $ 30 billion over the next 5 years and increase employment in the industry. 50 lakh currently to 75 lakh by 2025.
The government has also urged the auto industry to locate and reduce China’s dependence on imports, especially electronic, electrical and semiconductor components. “The automotive components industry should indigenize the manufacturing of electric vehicle components and India should not become a major importer of electric vehicle (EV) components as is the case with the solar industry,” said Amitabh Kant, CEO of Niti Aayog. “As global automakers diversify their supply chain, they look for supply centers outside of China and India there is a huge opportunity,” he added. While emphasizing the transition of electric vehicles, he also stressed the importance of reducing China’s dependence on internal combustion engine vehicles. “As automakers increase production, they need to strengthen localization and reduce reliance on imports, especially from China, of parts such as catalytic converters, electronic and electrical parts, semi -conductors and other critical components, ”he added. For their part, automakers have stressed the need for consolidated investments in critical areas such as semiconductors. SIAM President Kenichi Ayukama said, “The semiconductor shortage impacted our industry last year and continues to be a big challenge this year. The manufacture of semiconductors requires huge investments. India’s auto industry alone cannot ensure the viability of such a huge investment. There is therefore a need for consolidation between sectors. “The localization roadmap developed by SIAM and ACMA can only be successful with the full support of the government,” he added. Hyundai Motor India Managing Director and CEO SS Kim described his company’s manufacturing plans, stating that Hyundai’s specific operations in India will focus on zero-emission vehicles, maximum customization, market-friendly technology and people-centered and prepare for uncertainties due to dynamic business conditions.

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