04 Jan 2025
Govt. Plans to Boost Advanced Automotive Technology and Local Manufacturing
The Ministry of Heavy Industries (MHI) has approved incentive claims worth ₹246 crore for Tata Motors and Mahindra & Mahindra under the Production-Linked Incentive (PLI) scheme. This scheme aims to strengthen India's automobile and auto components industry by promoting advanced automotive technology (AAT) products and boosting local manufacturing.
Key Highlights of the PLI Incentives
Incentive Details:
- Tata Motors: Claimed ₹142.13 crore for fiscal 2023-24 based on AAT sales of ₹1,380.24 crore. Eligible products include Tiago EV, Starbus EV, and Ace EV.
- Mahindra & Mahindra: Claimed ₹104.08 crore for AAT sales of ₹800.59 crore in the same fiscal year. Their e3W models like Treo, Treo Zor, and Zor Grand contributed ₹836.02 crore to eligible sales.
Incentive Rates:
- 13%–18% for EV and hydrogen fuel cell components.
- 8%–13% for other AAT products.
Statements from Key Officials
H. D Kumaraswamy, Minister for Heavy Industries and Steel, said that “Mahindra & Mahindra Limited has submitted an incentive claim of INR 104.08 crore based on determined incremental sales of AAT products totalling INR 800.59 crore for fiscal 2023-24, with a cumulative investment of INR 978.30 crore.
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“The eligible sales from their e3W models—including Treo, Treo Zor, and Zor Grand—amount to INR 836.02 crore, supported by a certificate of DVA issued by the Automotive Research Association of India (ARAI),”
According to Kumaraswamy, Tata Motors Limited has submitted an incentive claim of approximately INR 142.13 crore for determined sales in fiscal 2023-24. “The eligible sales of AAT products from Tata Motors include the Tiago EV (an electric four-wheeler), Starbus EV (an electric bus model), and Ace EV (an electric cargo vehicle), totalling INR 1,380.24 crore,” he said.
The PLI Scheme's Impact
Approved on September 15, 2021, the PLI scheme is designed to incentivize innovation in the automobile sector, especially in EVs and hydrogen fuel cell technology.
- Investment Generated: As of September 2024, the scheme has facilitated investments of ₹20,715 crore.
- Incremental Sales: Generated sales worth ₹10,472 crore.
- First Disbursement: Scheduled for fiscal 2024-25.
The scheme, operating from 2023-24 to 2027-28, aims to address cost disabilities, establish a robust supply chain, and enhance India's manufacturing capabilities in advanced automotive technology.
Future Prospects
The PLI scheme continues to draw attention from manufacturers eager to innovate and expand in India's growing EV market. With the disbursement of the first incentives nearing, the government expects more investments and higher domestic value addition in the coming years.
Tata Motors and Mahindra & Mahindra's achievements underline the scheme's success in driving India towards a sustainable and self-reliant automotive future.
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