Auto Parts Makers Bosch and Uno Minda Set to Get Key Certifications Under Government Scheme

Bosch Ltd and Uno Minda Ltd are about to receive domestic value-addition (DVA) certificates under the Indian government’s production-linked incentive (PLI) scheme for automotive and auto components, according to sources.

The PLI scheme, worth ₹25,938 crore, aims to boost local manufacturing in the automotive sector. Bosch, a German company, and Uno Minda, based in Gurugram, will soon join other companies that have already received their DVA certifications.

To qualify for the PLI scheme, companies must prove at least 50% domestic value addition in their products and supply chains. This certification is necessary to receive the incentives offered under the scheme.

The PLI-Auto scheme was approved in 2021 to encourage the production of automotive technology products and develop both domestic and global supply chains. The scheme’s duration has been extended by one year, now running for five financial years starting from 2023-24.

So far, eight companies, including Tata Motors, Mahindra & Mahindra, and Ola Electric, have received their DVA certificates, with this number expected to grow to 13 soon. In total, 14 automobile manufacturers and 73 auto component makers were selected as beneficiaries under the scheme.

Achieving the required 50% DVA is challenging in the automotive industry due to heavy reliance on imports. Only a few companies have managed to secure DVA status so far.

The DVA certification is part of the broader goal of promoting domestic manufacturing, especially under the electric vehicle incentive scheme ‘FAME.’ To get the DVA certificate, companies must produce at least 50% of their products in India.

The scheme has successfully attracted proposed investments of ₹67,690 crore, surpassing the target of ₹42,500 crore over five years. The automotive industry has brought in over $36 billion in foreign direct investment to India from April 2000 to March 2024.

Bosch, Uno Minda, and the ministry of heavy industries did not respond to queries regarding this development.