New Delhi, Feb 11 (BUS): Ford Motor Co. (FN), Suzuki Motor Corp (7269.T) and Hyundai Motor (005380.KS) are among 20 companies eligible for incentives under India’s $3.5 billion boost plan. On Friday, the government said clean fuel vehicles.
The federal government last year approved a plan to give the auto sector benefits over five years to boost production of electric and hydrogen fuel vehicles and their components, Reuters reported.
The scheme is also part of Prime Minister Narendra Modi’s government’s plan to cut the fuel import bill and reduce pollution by encouraging local production of clean cars.
The Ministry of Heavy Industries said it approved applications from 20 companies that also include Kia Motors (270000.KS), Tata Motors (TAMO.NS), Mahindra and Mahindra (MAHM.NS) and Softbank Group (9984.T) Ola Electric.
Ford decided last year to stop selling cars in India but still maintains two factories in the country. The automaker is exploring the possibility of using one of its plants in India as a production base for electric vehicles for export.
Tata Motors said it was committed to “shaping India’s vehicle landscape with smart and sustainable mobility solutions”.
Suzuki, Hyundai, Kia, Mahindra and Ola did not immediately respond to a request for comment.
A total of 115 automakers and auto parts makers have applied for the incentive scheme. The government will announce the final list of auto component makers at a later time.
Incentives range from 8% to 18% of the value of vehicle or component sales, and will be given to companies if they meet certain conditions such as a minimum investment over five years and 10% sales growth each year, according to Reuters. Previously mentioned.
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