India objects to chips for America Five OEMs get PLI approval for H2-FCEV

According to a recent ICRA study, the average age of M&HCVs is nearly 10 years in comparison to 7.3 years for PVs. The increase in demand has also had a favourable effect on aftermarket dealer and garage cash flows. Shamsher Dewan, Senior Vice President and Group Head - Corporate Ratings, at ICRA, said, “Original Equipment Manufacturers (OEMs) have undertaken periodic price hikes across segments in the last two to three years because of the changes in regulatory norms and cost inflation. Further, the semiconductor shortage and supply-chain issues have resulted in longer delivery time lines.” Dewan opined, the replacement demand would increase by six-to-eight per cent in FY24, driven by underlying demand factors such as rising mobility, strengthening economic activity, and wholesome freight movement.

The Minister of State (MoS) for Heavy Industry, Krishnan Pal Gurjar, informed the Lok Sabha, that five OEMs have received approval under the Production Linked Incentive (PLI) scheme for H2FCEV. These include Ashok Leyland, VE Commercial Vehicles, Pinnacle Mobility, Tata Motors, and Booma Innovative Transport Solutions. These five OEMs are now part of the approved 20 applicants by the Ministry of Heavy Industry (MHI) for the Champion OEM Incentive programme. The minister also informed the house regarding the development of Internal Combustion Engines (ICE), powered by hydrogen, hydrogenated CNG, and diesel.