The Ministry of Heavy Industries vide its press release dated 8th February 2022, has notified all the recent measures, announced to support Auto Sector. Government has approved the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry in India to boost domestic manufacturing of Advanced Automotive Technology products and attract investments in the automotive manufacturing value chain with a budgetary outlay of Rs. 25,938 crores over a period of five years.
The wholesale, and retail trade and repair of vehicles was brought under the ambit of the MSME Development Act and the Announcement of a voluntary vehicle scrapping policy, to phase out old & unfit vehicles.
The following steps have been taken by Government to encourage ethanol, flex engine, CNG, LPG, green hydrogen and electric vehicles:
- Incentives under PLI Scheme for Automobiles and Auto Components for flex fuel engine and components.
- Incentives under PLI Scheme for Automobiles and Auto Components for CNG and LPG parts and components.
- Incentives under PLI Scheme for Automobiles and Auto Components for Hydrogen Fuel Cell Vehicles and their components.
Further, the government has taken steps for adopting electric vehicle in the country by providing incentives for manufacturing of Advanced Chemistry Cell and has reduced the GST on electric vehicles from 12% to 5% and the GST on chargers/ charging stations for electric vehicles has been reduced from 18% to 5%.
