Tata Motors And M&M Get Incentives of Rs 246 Crore Under PLI Scheme

The government has allocated 25,938 crore under the PLI scheme for the advancement of the country’s automotive sector, and Tata Motors and M&M have combined claims of 246 crore.

H D Kumaraswamy, Heavy Industries Minister, said that the ministry approved the claim of Tata Motors and Mahindra & Mahindra. These companies have claimed 246 crore from the government’s PLI scheme, launched to boost local manufacturing and advancement of the automobile industry.  

The production-linked incentive scheme is offered, ranging from 13% to 18%, for components related to electric vehicles and hydrogen fuel cells. At the same time, other AAT components receive incentives between 8% and 13%.

This scheme will promote advanced automotive technology (AAT) to reinforce local manufacturing and establish a robust supply chain. Tata Motors has claimed 142.13 crore for fiscal 2023-24 based on advanced automotive technology sales of ₹1,380.24 crore, and its products Tiago EV, Starbus EV, and Ace EV are eligible for the incentives. On the other hand, Mahindra & Mahindra has claimed ₹104.08 crore for advanced automotive technology sales of ₹800.59 crore in the 2023-24 fiscal year. The sales of Treo, Treo Zor, and Zor Grand amounting to Rs 836.02 crore are eligible for the incentives.

The Minister for Heavy Industries and Steel, H. D Kumaraswamy, also stated that integrating travel and transportation, infrastructure development, information technology, communications, consumer electronics, and more is reshaping how we perceive mobility. In this swiftly changing environment, vehicles are a driving force transforming various industries. Advanced chips and semiconductors empower this combination. All these are revolutionising the interaction of vehicles with different sectors. 

The PLI scheme for the automobile sector was approved in 2021 to boost local manufacturing, reduce imports, and promote innovation. Since its launch, this scheme has shown its impact, increased exports, reduced imports, increased FDI, and improved sustainability. This scheme has enhanced India’s level of global standing.