PLI Scheme Set to Boost India's Advanced Automotive Tech Manufacturing

The Production Linked Incentive (PLI) program seeks to improve India's manufacturing strength in Advanced Automotive Technology (AAT) goods, tackle cost challenges, and create a strong supply chain. Mahindra & Mahindra and Tata Motors have reported approximately Rs 246 crore in production linked incentive (PLI) for increased production, said heavy industries minister H D Kumaraswamy on Thursday.

These assertions have been presented under a PLI scheme aimed at enhancing the Automobile and Auto Components Sector, which has a budget allocation of Rs 25,938 crore.

Incentives provided under the PLI scheme vary from 13% to 18% for components associated with Electric Vehicles and Hydrogen Fuel Cells, whereas other AAT components receive incentives in the range of 8% to 13%.

In a written statement, Kumaraswamy mentioned that those applying under the scheme have started to experience its advantages, successfully meeting the necessary 50% domestic value addition.  “Mahindra & Mahindra Limited has submitted an incentive claim of Rs 104.08 crore based on determined incremental sales of AAT products totalling Rs 800.59 crore for fiscal 2023-24, with a cumulative investment of Rs 978.30 crore.

“The eligible sales from their e3W models—including Treo, Treo Zor, and Zor Grand—amount to Rs 836.02 crore, supported by a certificate of DVA issued by the Automotive Research Association of India (ARAI),” he said.

According to Kumaraswamy, Tata Motors Limited has submitted an incentive claim of approximately Rs 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 Rs 1,380.24 crore,” he said.