Tata Motors Targets ₹6,500 Crore Revenue from PLI Scheme for Electric Vehicles

Key Highlights:

• Tata targets ₹6,500 crore via PLI, with ₹4,000 crore from PVs and ₹2,500 crore from CVs.
• Earned ₹385 crore in FY25 PLI benefits, up from ₹142 crore in FY24.
• EVs like Tiago, Tigor, Punch fetch ₹40 crore/month in incentives.
• New models like Nexon, Harrier, and Curvv to push benefits to ₹700 crore/year by FY26.
• EV market share dropped to 35%, but Tata aims to bounce back to 50%.

Tata Motors is gearing up to earn around ₹6,500 crore over the next few years through the government’s Production-Linked Incentive (PLI) scheme aimed at promoting electric vehicle (EV) manufacturing in India. With a growing EV portfolio and increased production, the company plans to tap into both passenger and commercial vehicle segments under this scheme.

Passenger Segment Leads EV Drive

Out of the targeted ₹6,500 crore, Tata Motors expects ₹4,000 crore to come from its electric passenger vehicles (PVs). The rest, ₹2,500 crore, is projected from electric commercial vehicles (CVs). So far in FY25, the company has already availed ₹385 crore under the scheme, ₹250 crore from PVs and ₹135 crore from CVs. This is a jump from ₹142 crore in FY24.

Currently, Tata Motors sells three electric cars, Tiago EV, Tigor EV, and Punch EV, that together generate about ₹40 crore per month through the PLI scheme. With the addition of new models like the Harrier EV and Nexon EV (45 kWh variant), the company expects to push this figure to ₹700 crore by the end of FY26.

According to a Tata Motors executive, “We expect to earn about ₹3,000-₹4,000 crore from the passenger EV segment in the next couple of years alone. By the time all our new EVs like the Curvv, Harrier, and Sierra are certified, we will see strong growth in PLI-linked earnings.”

Focus on Commercial Vehicles

Tata Motors is also counting on its commercial vehicle division to contribute significantly to the PLI benefits. The company has three certified variants of the Tata Ace electric mini truck, along with two certified variants each of the Starbus and Ultra electric buses. These vehicles are eligible for incentives under the scheme.

The commercial vehicle division has already seen a 20 basis points improvement in Ebitda margins, thanks to the scheme. On the passenger vehicle side, the boost is even higher, at 70 basis points. This shows the direct financial impact of the incentives on Tata Motors’ profitability.

Market Share and Strategy Ahead

While Tata Motors has been leading the EV market, its passenger EV share dropped to 35% by the end of May 2025, down from 81% in FY23. Despite this, the company is optimistic about regaining ground. “We expect to return to 50% market share in the medium to long term,” said Shailesh Chandra, MD of Tata Passenger Electric Mobility, during Tata’s annual Investor Day event in Mumbai.

Tata Motors’ strategy includes a broader product range, certification of new models under the PLI scheme, and enhanced production capacity, all aimed at solidifying its leadership in the Indian EV market.

Looking Ahead

The PLI scheme is open till FY28, giving Tata Motors enough time to scale its EV operations and maximise incentive earnings. With a clear focus on both passenger and commercial EVs, the company is set to make the most of this government-backed opportunity.

Also Read: Tata Motors Registered 30,238 Commercial Vehicle Sales in June 2025

CMV360 Says

Tata Motors is making a smart move by using the PLI scheme to grow its electric vehicle business. With more EV models coming and better production plans, the company is well-prepared to increase its earnings and stay strong in the market. Even though its market share dropped recently, Tata has a good chance to bounce back and lead again if it keeps up the pace and delivers on its plans.