Tata Motors and M&M have submitted incentive claims of Rs 142.13 crore and Rs 104.08 crore, respectively, for determined sales value in the financial year 2024 and the claims have been approved by the government.
02 Jan 2025 | 5577 Views | By Kiran Murali
Tata Motors Ltd and Mahindra & Mahindra have submitted a total of Rs 246 crore in incentive claims under the government’s production-linked incentive (PLI) scheme for automobile and auto components, according to the Ministry of Heavy Industries. These incentive claims are made on determined sales for the financial year 2024 ...
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Tata Motors Ltd and Mahindra & Mahindra have submitted a total of Rs 246 crore in incentive claims under the government’s production-linked incentive (PLI) scheme for automobile and auto components, according to the Ministry of Heavy Industries. These incentive claims are made on determined sales for the financial year 2024 and the claims have been approved by the government.
The government launched the Rs 25,938 crore output-linked incentive in 2021 to boost domestic manufacturing of advanced automotive technology (AAT) products and attract investments in the automotive manufacturing value chain. Incentives are applicable on the “determined sales value” which is defined as the incremental eligible sales of a particular year over the base year.
Tata Motors has submitted an incentive claim of Rs 142.13 crore for determined sales in 2023-24. The eligible sales of AAT products from Tata Motors include the Tiago EV, Starbus EV, and Ace EV, totaling Rs 1,380.24 crore, as per the ministry.
M&M has submitted an incentive claim of Rs 104.08 crore based on the determined sales value of AAT products totaling Rs 800.59 crore for 2023-24. The eligible sales from M&M include electric three-wheelers including Treo, Treo Zor and Zor Grand, totalling Rs 836.02 crore.
The total claims from Tata Motors and M&M have been examined and recommended by the Project Management Agency (PMA) and subsequently approved by the Ministry of Heavy Industries, the statement said.
The PLI Auto scheme has two components – the Champion OEM incentive scheme for battery electric and hydrogen fuel cell vehicles in all segments, and the component champion incentive scheme for hi-tech and hi-value components. Under this scheme, incentives are offered ranging from 13% to 18% for components of electric vehicles and hydrogen fuel cells while other AAT products receive incentives between 8% and 13%.
Apart from Tata Motors and M&M, the government has given approval to 16 more companies including Maruti Suzuki, Toyota Kirloskar, Hyundai Motor India, Kia India, Piaggio, Eicher, Hero MotoCorp, Bajaj Auto and Ola Electric, to participate in the scheme under the Champion OEM category.
Under the Component Champion category, 67 companies, including Sona BLW Precision, Delphi-TVS Technologies, Bharat Forge, Bosch, Dana Ananda India, Lumax Auto, Minda Corp, Aptiv Components, Maruti Suzuki, Ceat, Hero Cycles, have got approval.
Initially, the incentives were applicable on determined sales value from the financial year 2022-23 for five consecutive financial years till 2026-27. However, the scheme was later amended to extend the tenure by one year to March 31, 2028. The incentives are scheduled to be disbursed from 2024-25 to 2028-29. The first incentive disbursement is anticipated this financial year.
READ MORE: Govt to disburse incentives under PLI Auto scheme from Q4FY25