Sona Comstar becomes first auto component supplier to get PLI certification, shares rise nearly 6%
Upstox
2 min read • Updated: February 23, 2024, 3:24 PM
Summary
Sona Comstar said that it filed seven applications for different products under the PLI scheme and received the certification for its first product, which is a hub wheel drive motor for electric two-wheelers
Sona BLW Precision Forgings Ltd shares surged nearly 6% on Friday after the company became the first automotive component maker to receive certification for one of its products under the government’s Production Linked Incentive (PLI) Scheme.
The company informed the exchanges in a press release on Friday, February 23, that it has received the PLI certificate for the traction motor for electric two-wheelers.
Sona BLW Precision Forgings, also known as Sona Comstar, has become the first automotive component manufacturer in India to have received a certification under the PLI scheme for the sector.
The company received the PLI certificate from the Ministry of Heavy Industries on Thursday, February 22. Sona Comstar said that it filed seven applications for different products under the PLI scheme and received the certification for its first product, which is a hub wheel drive motor for electric two-wheelers.
Sona Comstar’s research and development (R&D) team had developed the electric vehicle (EV) traction motors in-house and launched them for production four years ago in 2020. It now stands among India’s leading manufacturers of EV traction motors.
The PLI scheme was introduced by the central government in 2021 for various sectors. The scheme was also offered to players in the automotive industry with an aim to incentivise the domestic production of high-value advanced automotive technology vehicles as well as products. The total outlay for auto and auto component sector under the PLI scheme, stands at ₹259 billion over the next five years.
“We are proud to be the first company in the auto component industry to receive the PLI certification. This recognition reaffirms the company's commitment to making India proud of its engineering skills and solving complex and customized engineering problems for its customers,” the MD & Group CEO of Sona Comstar, Vivek Vikram Singh said in the press release on Friday.
Shares of Sona Comstar were trading 6% higher at ₹650 apiece on NSE at 3:15 pm