The Production Linked Incentive (PLI) scheme for India's Automobile and Auto Components Industry is developing manufacturing competency in Advanced Automotive Technology (AAT) products, easing cost burdens, and building a supply chain ecosystem. The scheme provides a reimbursement scale of between 13% and 18% of the costs of components connected to EVs and Hydrogen Fuel Cells and 8% to 13% of other AAT components.
Heavy Industries Minister H.D. Kumaraswamy shared that applicants under the scheme have begun reaping its benefits. “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,” he said.
Mahindra’s claim highlights sales from its e3W models—Treo, Treo Zor, and Zor Grand—amounting to ₹836.02 crore. Similarly, Tata Motors has claimed ₹142.13 crore for determined sales of ₹1,380.24 crore, led by its Tiago EV, Starbus EV, and Ace EV.
Having implemented with ₹25,938 crore budgetary support the PLI scheme has attracted ₹20,715 crore worth of investments and incremental sales of ₹10,472 crore. This scheme got its approval in September 2021, and an incentive payoff is proposed for FY 2024-25, making it effective for aspiring India to progress in the green mobility and a new-age automobile technology.
This initiative is lined up with the direction of sustainable and future-proof automotive industry of India which will provide more investment and innovation in the global automotive industry market.
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