Lok Sabha Question No. 923 (UNSTARRED), answered on 2022-02-08
Subject: Automobile Industry's Turnover
Ministry: HEAVY INDUSTRIES
Asked by: S. Jagathrakshakan

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 923

ANSWERED ON 08.02.2022

## AUTOMOBILE INDUSTRY's TURNOVER

## 923. SHRI S. JAGATHRAKSHAKAN:

Will the Minister of HEAVY INDUSTRIES भारी उद्योग मंत्री be pleased to state:

- (a) whether  the  Government  has  drawn  any  action  plan  to  increase  the  automobile industry's turnover to the volume of Rs. 15 lakh crore within the next five years;
- (b) if so, the details thereof and if not, the reasons therefor; and
- (c) the  steps  taken  by  the  Government  to  encourage  ethanol,  flex  engine,  CNG,  LNG, green hydrogen in electric vehicles?

## ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES

## (SHRI KRISHAN PAL GURJAR)

(a) & (b): Sir,  the  Government,  as  a  policy  maker,  attempts  to  keep  and  improve momentum of the economy through a package of measures for comprehensive and continued development  of  the  industry.    Recently  the  following  measures  have  been  announced  to support Auto Sector:

- i. 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.
- ii. The  Government  on  12 th May,  2021  approved  a  Production  Linked  Incentive  (PLI) scheme for manufacturing of Advanced Chemistry Cell (ACC) in the country in order to bring down prices of battery in the country.  Drop in battery price will result in cost reduction of electric vehicles and increase in their sales.
- iii. Announcement  of  a  voluntary  vehicle  scrapping  policy,  to  phase  out  old  &  unfit vehicles.
- iv. The wholesale, and retail trade and repair of vehicles was brought under the ambit of the MSME Development Act.
- v. In Budget 2021-22, a scheme has been announced to support augmentation of public transport bus services with a total outlay of Rs. 18,000 crore.
6. (c): Sir,  the  following  steps  have  been  taken  by  Government  to  encourage  ethanol,  flex engine, CNG, LPG, green hydrogen and electric vehicles:
- i. Incentives  under  PLI  Scheme  for  Automobiles  and  Auto  Components  for  flex  fuel engine and components.
- ii. Incentives under PLI Scheme for Automobiles and Auto Components for CNG and LPG parts and components.

- iii. Incentives under PLI Scheme for Automobiles and Auto Components for  Hydrogen Fuel Cell Vehicles and their components.

Further, following steps have been taken by the Government for adoption of electric vehicles in the country:

- i. Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in 2015 to promote adoption of electric/ hybrid vehicles (xEVs) in the country.
- ii. The Government on 12 th May, 2021 approved a Production Linked Incentive (PLI) scheme  for  manufacturing  of  Advanced  Chemistry  Cell  (ACC)  in  the  country  in order to bring down prices of battery in the country.  Drop in battery price will result in cost reduction of electric vehicles.
- iii. Electric Vehicles are covered under Production Linked  Incentive (PLI) scheme for Automobile and Auto Components, which was approved on 15 th September,  2021 with a budgetary outlay of Rs. 25,938 crore for a period of five years.
- iv. GST  on  electric  vehicles  has  been  reduced  from  12%  to  5%;  GST  on  chargers/ charging stations for electric vehicles has been reduced from 18% to 5%.
- v. Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles will be given green license plates and be exempted from permit requirements.
- vi. MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.

******