By priya
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Updated On: 26-May-2025 10:02 AM
Tata Motors received ₹527 crore from the government’s PLI scheme to support the production of electric vehicles in India. This helps the company grow and keep costs low in the EV market.
Key Highlights:
Tata Motors said it got ₹527 crore as incentives under the government’s PLI scheme for electric vehicles and auto parts in the financial year 2025, showing its focus on local production. The company mentioned in its annual report, “In FY25, we received approval and payment for FY24 and also recorded the expected amount for FY25 based on TCA approval.”
The government started a ₹25,938 crore production-linked incentive (PLI) scheme in 2021 to support local manufacturing of advanced automotive technology (AAT) products and bring in more investments in the auto industry.
The incentives are based on the “determined sales value,” which means the increase in eligible sales in a year compared to the base year. For electric vehicle and hydrogen fuel cell parts, incentives range from 13% to 18%, while other AAT products get between 8% and 13%. Tata Motors got ₹142.13 crore as incentives for its eligible sales in the financial year 2024. These sales came from AAT products like the Tiago EV, Starbus EV, and Ace EV, which together made ₹1,380.24 crore in revenue. AAT is abbreviated for advanced automotive technology.
The company said, “For FY25, the group has recorded ₹385 crore as income for products that met the Domestic Value Addition (DVA) rules and passed the Techno Commercial Audit (TCA).” Out of the total ₹527 crore claimed under the PLI scheme, ₹352 crore was for the passenger vehicle segment and ₹175 crore for the commercial vehicle segment.
Tata Motors is the top electric passenger car maker in India, selling 64,269 units in FY25. “In the EV segment, we are among the few global companies to reach positive EBITDA, helped by high localisation, strong cost control, and PLI benefits,” said Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.
The company is focusing on localisation as a main part of its plan, achieving 75–80% localisation at the tier 1 supplier level. The company said that a high level of localisation brings better flexibility, lower costs, and a stronger supply chain. It also helps support the long-term growth of India’s electric vehicle ecosystem. Tata Motors added, “Our strong localisation efforts helped us qualify for and receive benefits under the government’s PLI scheme, which will support our plans for sustainable mobility.”
Also Read: Tata Motors Adds 20 More Ace EVs to Magenta Mobility Fleet
Tata Motors receiving ₹527 crore from the PLI scheme is a positive sign for India’s electric vehicle industry. It shows that the company is committed to making more parts locally, which can reduce costs and create jobs. This kind of support will help Tata Motors and the whole EV market grow stronger in the future.