- 03 Jan 2025
- ICICI Securities
GOVERNMENT APPROVES PLI INCENTIVES FOR MAJOR OEMS
News: According to media sources, Mahindra & Mahindra (M&M) and Tata Motors have secured substantial incentives totalling ₹246 crore under India's Production Linked Incentive (PLI) scheme for the fiscal year 2023-24, recognizing their contributions to advanced automotive technologies. Tata Motors received ~₹142 crore based on sales from its electric vehicles, while M&M received claimed of ₹104 crore for its electric three-wheelers.
Views: The PLI scheme, which has a total budgetary outlay of ₹25,938 crore, provides financial incentives that range from 8% to 18% based on sales of electric vehicles and components. The amount received by Tata Motors is based on sales of its Tiago EV, Star bus EV, and Ace EV, totalling ₹1,380 crore in FY24, while M&M received incentive based on sales of its electric three-wheeler models (Treo, Treo Zor, and Zor Grand), totalling ₹800 crore during the same period. With healthy December’24 volumes on the PV side and increase in EV penetration in the country, Tata motors and M&M are well poised to gain advantage from this scheme.
Impact: Positive