Automobiles - PLI For Auto Sector Focuses On ‘Atmanirbhar Bharat’: Motilal Oswal

Automobiles - PLI For Auto Sector Focuses On ‘Atmanirbhar Bharat’: Motilal Oswal

Sport-utility vehicles move along a conveyor on the production line at a manufacturing unit in Chakan, Maharashtra, India. (Photographer: Udit Kulshrestha/Bloomberg)

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Motilal Oswal Report

We hosted Mr Saurabh Agarwal, Partner – E&Y, to understand his perspective on the production linked incentive scheme for the auto sector.

While these discussions are based on the understanding of the scheme, a detailed policy document is not available yet.

The objective of this scheme is to develop local capabilities and capacities in advanced technologies for the automotive industry by incentivising the industry to make fresh investments.

This scheme could potentially change the competitive landscape as the eligibility criteria may not favor smaller original equipment manufacturers and older start-ups.

Also, it seems the PLI incentive would be on a -add basis.

Click on the attachment to read the full report:

Motilal Oswal Automobiles Sector Update.pdf
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