Govt may bring incentive scheme to push R&D in auto component sector

Auto industry is investing in R&D, more needs to be done, especially as the pace of electrification accelerates

The government is contemplating an incentive scheme to encourage research and development (R&D) in the auto components sector, particularly for electric vehicles (EVs), said Hanif Qureshi, joint secretary in the Ministry of Heavy Industries. Qureshi made the comments during the annual session of the Automotive Component Manufacturers Association of India (ACMA).

“Our focus is not only on electric and other green vehicles but also on localisation. The latter can only be achieved when companies invest significantly in R&D,” Qureshi said. He added that the government has already allocated substantial funds for this purpose, with around Rs 10,000 crore spent on the