India and Taiwan are in talks on an agreement that could bring chip manufacturing to South Asia by the end of the year.

The government has issued notification regarding Production Linked Incentive (PLI) Scheme for automobile & auto components.

An ongoing global shortage in semiconductors is on track to cost the world’s automakers $210bn in lost revenue this year, almost double that of previous estimates.

Government’s productivity linked incentive (PLI) scheme for auto and component industry is set to change it in a big way through electric vehicles (EV), new technologies and new players in the market.

It is estimated that over a period of five years, the PLI Scheme for automobile and auto components industry will lead to fresh investment of over Rs 42,500 crore, incremental production of over Rs 2.3 lakh crore

Ind-Ra has maintained an improving outlook for the auto ancillary sector and maintained a stable outlook on its rated portfolio for the second half of FY22. Credit metrics are likely to improve in FY22.

Ind-Ra revised auto volumes growth forecast to 12%-16% YoY from the initial forecast of 16%-20% YoY. The downward revision is due to a revision in the growth forecasts for 2Ws and PVs.

This year auto dealers expect the semiconductor shortage to result in sales dropping by about 30%. SIAM has asked the MEA to reach out to chipmakers to prioritise Indian automakers when plants reopen.

The CII President said that the Indian auto ancillary industry should expand its export list and reach at least 5% of global components trade by 2026. He shared his views at the 61st annual session of ACMA.