04 Jul 2025
Rs 6,500 Crore PLI Goal by FY28: Rs 2,500 Crore from CVs & Rs 4,000 Crore from PVs
Tata Motors, India’s leading commercial vehicle manufacturer, is aiming to earn Rs 2,500 crore under the Production-Linked Incentive (PLI) scheme through its commercial electric vehicles (EVs) by FY28. The company also expects to generate Rs 4,000 crore from its passenger electric vehicles, taking the total PLI benefit target to Rs 6,500 crore over the next few years.
Commercial Vehicles at the Centre of Tata Motors’ PLI Strategy
Tata Motors is placing strong focus on its commercial vehicle (CV) segment to tap into the benefits of the government’s PLI scheme. The company already has certified electric models like the Ace EV mini trucks and electric buses under the Starbus and Ultra series. These vehicles are eligible for financial benefits through the PLI scheme, which supports EV manufacturing in India.
According to Tata Motors, its commercial EVs helped it earn Rs 135 crore in PLI incentives in FY25. This figure is expected to grow sharply in the coming years. The company is aiming for a total of Rs 2,500 crore from the commercial vehicle category alone by FY28.
In addition to the CV segment, Tata Motors is also active in the passenger vehicle (PV) space. It plans to earn Rs 4,000 crore from PVs under the PLI scheme. However, the commercial segment remains a major focus, especially as demand for electric delivery and public transport vehicles grows across the country.
Ace EV, Starbus, and Ultra Buses Drive PLI Growth
Tata Motors’ electric commercial vehicle line-up includes three variants of the popular Ace EV mini truck. These trucks are designed for last-mile delivery and are becoming increasingly popular due to their zero-emission performance and low running costs.
Additionally, Tata’s electric buses – the Starbus and Ultra series – are gaining attention from both government transport undertakings and private fleet operators. Two variants from each series are PLI-certified, making them eligible for incentives.
The growth in demand for these vehicles is expected to give a major push to the company’s overall PLI earnings. According to Tata Motors, the CV segment has already seen a 20 basis point improvement in EBITDA margins due to these incentives, which is a strong sign of positive momentum.
Company Confident About Long-Term Growth in EV Segment
While Tata Motors saw its passenger EV market share drop from 81% in FY23 to 35% by May 2025, the company remains confident about bouncing back. In the commercial EV space, Tata Motors continues to hold a leadership position.
Girish Wagh, Executive Director of Tata Motors, is leading the commercial division’s efforts to expand production and sales of electric trucks and buses. With new policies supporting clean transportation and a rising demand for electric logistics solutions, Tata Motors is well-positioned to expand its commercial EV business further.
Future Plans to Maximise PLI Benefits
To maximise the Rs 2,500 crore PLI target from CVs, Tata Motors is planning to scale up production and increase its vehicle range. New models in the pipeline, upgraded battery technology, and better charging infrastructure are also expected to help.
Perhaps more importantly, the company is looking at long-term demand for electric commercial vehicles as a way to strengthen its market share and improve profits. The PLI scheme provides a much-needed push to make electric trucks and buses more affordable for fleet operators.
In addition, the steady rollout of electric public transport systems across states will likely create more opportunities for Tata Motors’ electric buses. This is expected to add to the company’s income and help reach the PLI goals by FY28.
Passenger Vehicles Play a Smaller but Key Role
Though the main focus is on the commercial segment, Tata Motors has also made progress in the passenger EV category. Vehicles like the Tiago, Tigor, and Punch EVs are already earning around Rs 40 crore per month in PLI benefits. With new models such as Harrier EV, Nexon EV, and the upcoming Sierra EV, the company is aiming to push its annual benefits up to Rs 2,000 crore in the coming years from PVs.
Tata Motors’ plan to generate Rs 6,500 crore from the PLI scheme by FY28 is ambitious, but the commercial EV segment is expected to play a crucial role in reaching this goal. With reliable electric mini trucks and buses already in use, and more products on the way, the company is well-prepared to tap into the growing demand for electric mobility in India’s commercial space.
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