Tata Motors and Mahindra & Mahindra (M&M) have collectively claimed Rs 246 crore in incentives under the government’s Production-Linked Incentive (PLI) scheme for the automobile and auto components sector, according to the Ministry of Heavy Industries. These claims, based on sales for the financial year 2024, have been reviewed and approved by the government.
Launched in 2021 with a budget of Rs 25,938 crore, the PLI scheme aims to enhance domestic manufacturing of advanced automotive technologies (AAT) and attract investment into India’s automotive supply chain. The incentives are based on the “determined sales value,” which reflects the incremental sales achieved during the year over the base year.
Tata Motors has submitted an incentive claim of Rs 142.13 crore, based on AAT product sales valued at Rs 1,380.24 crore for the financial year 2023-24. Eligible products include the Tiago EV, Starbus EV, and Ace EV.
Mahindra & Mahindra has filed for Rs 104.08 crore in incentives, with AAT product sales amounting to Rs 800.59 crore in 2023-24. This includes sales from their electric three-wheelers, including the Treo, Treo Zor, and Zor Grand, totaling Rs 836.02 crore. Both companies’ claims have been reviewed and endorsed by the Project Management Agency (PMA), following which the Ministry of Heavy Industries granted approval.
The PLI Auto scheme consists of two parts: the Champion OEM Incentive Scheme, aimed at battery electric and hydrogen fuel cell vehicles across all segments, and the Component Champion Incentive Scheme, which supports high-tech and high-value components. Under the scheme, incentives for electric vehicle and hydrogen fuel cell components range from 13% to 18%, while other AAT products receive incentives between 8% and 13%.
In addition to Tata Motors and M&M, 16 other companies, including Maruti Suzuki, Toyota Kirloskar, Hyundai Motor India, Kia India, Piaggio, Eicher, Hero MotoCorp, Bajaj Auto, and Ola Electric, have received approval under the Champion OEM category. A total of 67 companies, including Sona BLW Precision, Delphi-TVS Technologies, Bharat Forge, Bosch, Dana Ananda India, Lumax Auto, and Minda Corp, have been approved under the Component Champion category.
Initially, the scheme was set to run for five years, from the 2022-23 financial year to 2026-27. However, it has since been extended until March 31, 2028. The first round of incentive disbursements is expected to begin in the 2024-25 financial year and continue through 2028-29.
