TVS Motor to account for PLI scheme incentives from Q4FY25

TVS Motor Company is likely to start accounting for the incentives under the government’s production-linked incentive (PLI) scheme for automobile and auto components from the fourth quarter of the current financial year, according to a senior company official. Incentives for sales of iQube during FY2025 are likely to be to be accounted for in the fourth quarter numbers.

“The entire iQube portfolio is approved for PLI benefits. The audit process and everything is in the advanced stage. You will see the PLI benefits related to the whole year being accounted for in the fourth quarter. That is our plan. After that, it will be quarterly. We are expecting some decisions to be taken in the last quarter,” Director and CEO KN Radhakrishnan said. 

TVS Motor sells electric two-wheelers under the iQube range. The portfolio includes three options – 2.2kW, 3.4kW and 5.1kW – across five variants. The automaker sold 75,771 electric scooters during the third quarter, up from 48,223 units in the year-ago period. The cumulative electric scooter sales for the nine months ended December 2024 reached 2.03 lakh units, up 40% from 1.44 lakh units in the year-ago period. 

Recently, Autocar Professional reported that the government expects to start disbursing the incentives under the PLI scheme in the January-March quarter of the current financial year. The government launched the Rs 25,938-crore scheme in 2021 to boost domestic manufacturing of advanced automotive technology (AAT) products and attract investments in the automotive manufacturing value chain. 

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, ranging from 8% to 18%, are applicable on the “determined sales value” which is defined as the incremental eligible sales of a particular year over the base year. 

The companies get an incentive based on how much their sales increase compared to a base year, provided they meet certain criteria regarding domestic value addition and investment levels. Initially, the incentives were applicable on determined sales value from the financial year 2022-23 for five consecutive financial years till FY 2026-27. However, the scheme was later amended to extend the tenure by one year to March 31, 2028. 

Tata Motors Ltd and Mahindra & Mahindra submitted a total of Rs 246 crore in incentive claims under the PLI scheme on determined sales for the financial year 2024, which have been approved by the government.