Tata Motors, Mahindra & Mahindra (M&M), Bajaj Auto, Ola Electric, and TVS Motor may also together claim over ₹2,000 crore this year under the government’s Production Linked Incentive (PLI) scheme for the auto sector, as per a government report.
These claims are based on the companies’ investments and increased sales during the last financial year, which ended on March 31.
Among them, Bajaj Auto is also expected to claim the most at ₹630 crore, followed by Tata Motors with ₹409 crore, also Ola Electric with ₹380 crore. TVS Motor may also claim ₹330 crore, and M&M could claim ₹283 crore.
Auto PLI Scheme: Big Claims Made, But Still ₹702 Crore Below FY26 Target
Even though major auto companies like Tata Motors, M&M, Bajaj Auto, Ola Electric, and TVS are expected to claim over ₹2,000 crore under the PLI scheme this year, also the total is still ₹702 crore less than the government’s FY26 budget target.
A government official said that the companies can still apply for the claims till September, so the final amount could increase.
Minister Reviews Scheme’s Progress
On Thursday, Heavy Industries Minister HD Kumaraswamy reviewed the PLI scheme and directed his ministry to help companies with the claim process, technical support, and ensuring more domestic value addition (DVA) in auto production.
“The scheme has attracted domestic investments worth ₹29,576 crore so far,” Kumaraswamy said.
“We are committed to industry workshops, faster claim approvals, and the strong support to build a self-reliant and globally competitive auto sector,” also he added.
Current Claim Status
So far, claims worth ₹322 crore have been paid out for FY24 to:
- Tata Motors
- Mahindra & Mahindra
- Ola Electric
- Toyota Kirloskar Auto Parts (TKAP)
This is despite over 80 companies being approved under the PLI scheme.
About the PLI Scheme
The Production Linked Incentive (PLI) scheme for automobiles had launched in September 2021 with a total budget of ₹25,938 crore.
It aims to help the Indian auto industry become globally competitive by supporting the production of Advanced Automotive Technology (AAT) products in India.
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