Auto sector will contribute to India's rise as 3rd largest economy: Pandey

The Indian automotive industry will have the highest contribution to the country's rise as the third-largest economy, said Mahendra Nath Pandey, Minister for Heavy Industries, on Tuesday.

Speaking at the auto Production Linked Incentive (PLI) conclave in New Delhi, he stated, "India is today the fifth-largest economy in the world and soon India will be the third-largest economy in the world. With the highest contribution of 35 per cent in Gross Domestic Product (GDP), the automobile industry is ready to play their role in this direction."

The Ministry of Heavy Industries is overseeing the Rs 25,938 crore Production Linked Incentive (PLI) scheme for Automobile and Auto Components (PLI-AUTO Scheme).

An official statement said results are coming as companies have commenced making investments and vehicle models are being approved for availing the scheme benefits.

This scheme has been successful in attracting proposed investment of Rs 67,690 crore, of which Rs 13,037 crore has been invested until December 31, 2023.

A committee has also been formed to decide if any new automobile components need to be supported under the ongoing PLI.

"Mahindra & Mahindra, Tata Motors, and Ola Electric have been early movers, and they have already received Domestic Value Addition (DVA) certification from testing agencies for their 22 variants of Advanced Automotive Technology (AAT) products," the statement said while adding that Mahindra & Mahindra is the first company to meet the DVA criteria in the three-wheeler category.

Tata Motors is the first company to meet the DVA criteria for both the four-wheeler and bus categories.

Ola Electric is the first two-wheeler company that has met the DVA criteria. In all, 115 companies had filed 120 applications under this PLI scheme.

Out of which, 85 applicants have been approved, comprising 18 applicants for the Champion OEM Incentive scheme and 67 applicants for the Component Champion Incentive scheme. Two Auto OEM companies were approved for both parts of the scheme.