New Delhi: India surpassed China in two-wheeler sales in 2023, fueled by a significant increase in rural consumption. Entry-level two-wheeler manufacturers in India have successfully expanded their reach into rural markets.
According to data from the Society of Indian Automobile Manufacturers (SIAM), India registered 17.10 million two-wheelers in the calendar year 2023, while China sold 16.6 million units. This information was provided by the government based on the Vahan database.
To enhance domestic manufacturing of advanced automotive technologies and attract investments in the automotive sector, the Indian government approved a production-linked incentive (PLI) scheme for the automobile and auto components industry on September 15, 2021. The scheme has a budget of Rs. 25,938 crore. As of November 26, five two-wheeler original equipment manufacturers (OEMs) have been approved under this program, according to Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy.
The PLI scheme offers incentives ranging from 13% to 18% on the sales value for AAT (advanced automotive technology) two-wheelers. Additionally, a PLI scheme for advanced chemistry cells (ACC) was approved on May 12, 2021, with a budget of Rs 18,100 crore, aimed at establishing a cumulative ACC battery manufacturing capacity of 50 GWh.
Furthermore, the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), notified on March 15 this year, encourages the manufacturing of electric passenger cars in the country. Approved applicants under this scheme can import completely built-in units at a reduced customs duty of 15% for five years, provided they set up manufacturing facilities for electric passenger cars in India.
As of November 28, there are 82 approved applicants under the PLI-Auto scheme, each having various manufacturing and engineering research and design facilities across India, as noted by Kumaraswamy.