In a significant boost to the Indian automotive industry, the Ministry of Heavy Industries has approved Production-Linked Incentive (PLI) claims worth ₹246 crore for Tata Motors and Mahindra & Mahindra (M&M) for the financial year 2023-24. The incentive scheme is part of the government’s efforts to promote the adoption of electric vehicles (EVs) and cutting-edge automotive technologies.
Breakdown of PLI Incentives: Tata Motors & M&M
- Tata Motors received an incentive of ₹142 crore based on its EV sales performance, including models like the Tiago EV, Starbus EV, and Ace EV. The company reported EV sales worth ₹1,380 crore for FY 2024.
- Mahindra & Mahindra (M&M) secured a ₹104 crore incentive under the scheme for the sales of its electric three-wheeler models, including the Treo, Treo Zor, and Zor Grand, with a total revenue of ₹800 crore for the same period.
PLI Scheme Overview
The Production-Linked Incentive (PLI) scheme aims to strengthen local manufacturing capabilities and encourage innovation in the automotive sector. The government has allocated a total budget of ₹25,938 crore for the scheme, which offers incentives ranging from 8% to 18% based on the sales of electric vehicles and their components.
Driving EV Adoption in India
The incentives reflect the government’s commitment to promoting sustainable mobility and reducing dependence on fossil fuels. By recognizing the contributions of Tata Motors and M&M in the EV space, the PLI scheme aims to accelerate the transition to electric mobility and boost the domestic production of EVs and components.
The approval of these incentives is expected to further drive innovation, enhance competitiveness, and attract investments in the Indian EV market. The initiative aligns with India’s broader goals of achieving carbon neutrality and promoting green technologies in the automotive sector.