Kia has not made any investment under the Auto PLI scheme, prompting the Indian government to exclude the South Korean automaker from the scheme,
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The Indian government has decided to exclude more than a dozen companies from the Production Linked Incentive (PLI) scheme for automobiles and auto parts. Kia is one of the companies excluded. The South Korean automaker has not made any investments in India under the Auto PLI scheme, an ambitious initiative by the Indian government that costs $Rs 26,000 crore to promote local automobile manufacturing. Kia India has been excluded from the Auto PLI scheme as it has not made investments under the scheme, which will result in the carmaker losing valuable bank guarantees $1-20 million.
The Auto PLI scheme was launched in 2021 to promote local automobile and auto parts manufacturing in India. Automotive industry players pledge to exceed $The same amount under the Auto PLI scheme is Rs 75,000 crore. However, according to LiveMint, at least 12 companies, including Kia, failed to make committed investments, resulting in these companies being excluded from the plan.
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Under the Automobile PLI scheme, the government aims to build a comprehensive ecosystem for the automobile industry that includes not only physical assets but also R&D investments. The report noted that in fiscal year 2024, the first year of claims, the auto industry only sought $500 crore investment, considering that the outlay for the scheme is approx. $26,000 crore in five years.
So far, Kia has not officially said anything about its exclusion from the Auto PLI program. However, the lack of investment may be due to changes in strategy or investment plans. The carmaker currently has a strong position in the country’s utility vehicle market with products such as Seltos, Sonet, Carens and the recently launched Syros. It also sells the Kia Carnival premium MPV. Apart from this, the carmaker also has two electric vehicles on sale in India, namely EV9 and EV6.
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First published date: December 23, 2024 08:53 AM IST