MHI releases SOP for PLI Auto scheme; Mahindra Last Mile Mobility Welcomes SOP Under Auto PLI

Mahindra & Mahindra is taking part in the PLI with its extensive line of electric three and four-wheelers. The scheme intends to give financial incentives to enable scalability and the development of a stable and strong supply chain in areas of Advanced Automotive Technology (AAT) products, while also creating new job possibilities.

The Government of India's Ministry of Heavy Industries (MHI) has issued the Standard Operating Procedure (SOP) for certification of Domestic Value Addition (DVA) under the Production Linked Incentive (PLI) Auto Scheme.

The Standard Operating Procedures for the PLI (Production Linked Incentive) Auto program have been made accessible to testing agencies by the Ministry of Heavy Industries.

Applicants will now be required to submit applications for testing and certification of AAT products (both OEMs and components) in order to qualify for incentives under the PLI Auto scheme.

Mahindra & Mahindra is taking part in the PLI with its extensive line of electric three and four-wheelers. The scheme intends to give financial incentives to enable scalability and the development of a stable and strong supply chain in areas of Advanced Automotive Technology (AAT) products, while also creating new job possibilities.

The OEM stated that it is pleased with the introduction of this SOP, which will provide clarity to PLI applicants and allow them to submit for certification of their products with testing organizations.

According to the OEM, the authority granted by MHI to testing agencies to loosen the provisions of the SOP recognizes the complexity of the automobile industry's supply chain, and this is a positive step.

"We appreciate the Indian Government's support for EVs through the PLI scheme, as well as the release of these SOPs. The PLI will assist us in introducing more sustainable, technologically advanced, and inexpensive 3-wheeler EVs in India, thereby contributing to a brighter future for all," stated Suman Mishra, CEO of Mahindra Last Mile Mobility.

The program is divided into two parts: Champion OEM, which will manufacture electric or hydrogen-powered vehicles, and Component Champions, which will manufacture high-value, high-tech components.

The Ministry's goal is to enhance domestic production and minimize reliance on imports, resulting in greater job possibilities for citizens. According to the government, it is committed to boosting skill development and entrepreneurship in the country, and this project will aid in that effort. The initiative is projected to attract substantial investments and assist India in becoming a global centre for vehicle manufacturing.

The primary goal is to overcome cost constraints, create economies of scale, and construct a strong supply chain in areas of advanced automotive technology products. The scheme also intends to create jobs throughout the country.To assist the automobile industry in moving up the value chain toward higher-value-added products.