Lok Sabha Question No. 1699 (UNSTARRED), answered on 2022-07-27
Subject: Ceasing Production by Automobile Manufacturer
Ministry: COMMERCE AND INDUSTRY
Asked by: Karti P. Chidambaram

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 1699.

TO BE ANSWERED ON WEDNESDAY, THE 27 TH  JULY, 2022.

## CEASING PRODUCTION BY AUTOMBILE MANUFACTURER

## 1699.  SHRI KARTI P. CHIDAMBARAM:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) whether any multi-national automobile or motorcycle manufacturer has ceased their production units in India and stopped selling their products during the past five years and if so, the details thereof;
- (b) the details of the funds invested by these manufacturers in India during the time they were operating in the country;
- (c) whether the Government is providing any incentives to multi-national automobile or motorcycle manufacturers to set up their production units in India;
- (d) if so, the details thereof and if not, the reasons therefor;
- (e) the  details  of  the  expected  and  the  actual  loss  incurred  till  now  in  revenue generation due to these companies ceasing their operation in India with yearon-year basis for the last five years?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री सोम प्रकाश ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) to (e):

The following automobile or motorcycle manufacturers have, during the past five years, ceased manufacturing of vehicles in India on account of restructuring of their business operations, business planning, decline in domestic sales etc. Exit may be related to possible operational reasons & does not in any way reflect the story of the Indian automobile sector or business environment in India.

- i) Harley Davidson
2. ii)  Ford India
3. iii) General Motors (GM)

During  their  operations  in  India,  the  cumulative  investment  made  by these companies is Rs. 31060 crores.

India's automotive growth story is alive and growing both in domestic and export markets. A churn in the market is a natural outcome of healthy competition and reflects  relative  competitiveness  of  companies  as  well  as  technological evolution to electric vehicles.

To incentivise auto companies, the Government notified the Production Linked Incentive  (PLI)  Schemes  for  automobiles  and  auto  components  on  23 rd September, 2021. PLI Scheme for this sector has been successfully launched and has managed to attract proposed investment of Rs. 74,850 crore against the target estimate of investment Rs. 42,500 crore over a period of five years. 75  Applicants  have  been  approved  under  'Component  Champion  Incentive Scheme';  20  Applicants  were  earlier  approved  under  'Champion  OEM Incentive Scheme'. Proposed investment of Rs. 29,834 crore expected from approved applicants under Component Champion Incentive Scheme. Incentive upto 18% are being given to industry to encourage industry to  make fresh investments in indigenous supply chain of Advanced Automotive Technology (AAT).

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