The Indian government aims to support localized production of Indian automotive industries, reducing import dependence through a huge production of associated incentives (PLI) programs.

According to the "Indian Times" report, the Indian Industrial Minister Ma Hendra Nath Pandy has recently expressed that the relevant policies are coming soon, and India's budget allocation of the automotive industry is up to 57,000 yuan ($ 769 billion). The department plans to expand the size of Indian car exports once to $ 30 billion in the next five years, and the number of employment in the automotive industry has increased from $ 7.5 million in the current 5 million.

At the same time, the Indian government urges the automotive industry to accelerate localization, reducing the dependence on Chinese products, especially electron electrical and semiconductor components.

Amitabh Kant, the CEO of Niti Aayog of the Indian government, said that the Indian auto parts industry should make EV parts to make localization. India should not be like the main imported countries like the solar industry.

He stated that the importance of electric vehicle transformation is to reduce the dependence on China's internal combustion engine. "As the (India) car manufacturer increases yield, they need to enhance localized production capacity and reduce import dependence, especially for catalytic converters, electrical and electrical components, semiconductors and other key components from China." He said With the diversification of the supply chain, India has huge opportunities to consider procurement outside China.

For this regard, automotive companies emphasize to integrate investment in key areas such as semiconductors.

Kenichi Ayukama, president of the Indian Automotive Manufacturer (SIAM), said that last semiconductor shortage has an impact on the automotive industry, this year is still a big challenge. Semiconductor manufacturing requires huge investment, and it cannot be done by the automotive industry. The localized road maps developed by the SIAM and Indian Auto Parts Manufacturers Association (ACMA) are only successful under the government's full support, "he added.