PLI scheme will accelerate commitment to new technologies: Automakers

The scheme will contribute towards reducing carbon emissions and oil imports with local manufacturing

The government’s productivity-linked incentive (PLI) scheme for the automotive sector will encourage companies to investment more on new technologies, produce parts locally, and generate additional employment, said top officials at auto firms.

This signals that there is no room for legacy automakers’ reluctance on switching to green vehicles in the world’s fifth largest auto market, experts said.

Rajiv Bajaj, managing director, Bajaj Auto, said the support from the policymakers towards futuristic vehicles puts greater onus on firms even as it steers clear of the earlier objectives of enhancing exports and employment. “The government’s PLI scheme in its new TLI (technology-linked incentive) avatar