Inside Indian auto sector’s race to harness the PLI scheme
- Despite a thriving domestic auto ecosystem, India is a marginal player in global supply chains. Is that set to change?
- Incentives alone may not be able to convince firms to shift to India and create a separate ecosystem unless the local market also generates sufficient demand, say analysts.
Over the past few months, even amidst intense uncertainty about vehicle sales and supply chain bottlenecks, automakers like Maruti Suzuki India Ltd have been dreaming up plans about the future. The trigger: the largest production-linked incentive (PLI) subsidy scheme that is on offer, among a rainbow of such sectoral plans which have been unveiled ever since the pandemic hit India in the spring of 2020.