Tata Motors Claims ₹527 Crore Under PLI Scheme Incentive

Tata Motors has acknowledged ₹527 crore as incentives under the Government of India’s Production-Linked Incentive (PLI) scheme for the auto and component manufacturing sector during the financial year 2025. This development reflects the automaker’s strategic emphasis on localization in electric vehicle (EV) production, which has helped it qualify for incentives.

PLI Incentives Boost EV Manufacturing and Localization

In its FY25 annual report, Tata Motors confirmed receiving PLI incentives amounting to ₹527 crore. This includes both the amount received for FY24 and the accrued incentives for FY25. The company stated:

“In FY25, we recognised PLI incentive of ₹527 crores on receipt of approval and money for FY24 and also accrued for FY25 basis TCA approval.”

The PLI scheme, launched in 2021 with a budgetary outlay of ₹25,938 crore, aims to promote the domestic production of advanced automotive technology (AAT) products and attract investments in the automotive manufacturing value chain.

Tata Motors’ Eligible EV Products Under PLI Scheme

Under the scheme, Tata Motors received ₹142.13 crore in incentives for the financial year 2024. This was based on the determined sales value—a calculation of incremental eligible sales in a financial year over the base year.

The company’s eligible AAT product sales during this period amounted to ₹1,380.24 crore, which included:

• Tiago EV

• Starbus EV

• Ace EV

For FY25, Tata Motors accrued an additional ₹385 crore as income, which applied to products that met Domestic Value Addition (DVA) criteria and passed the Techno Commercial Audit (TCA).

Breakdown: Passenger vs Commercial Vehicle Division

The ₹527 crore PLI incentive recognized by Tata Motors is divided between its two major business arms:

• ₹352 crore for the Passenger Vehicle (PV) division

• ₹175 crore for the Commercial Vehicle (CV) division

This dual benefit highlights the company’s widespread eligibility across multiple segments of its operations.

Tata Motors Leads India’s EV Market

Tata Motors remains the largest electric passenger car manufacturer in India, having sold 64,269 electric vehicles in FY25. The company’s robust EV portfolio and manufacturing capabilities have played a vital role in its dominance in the market.

Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, highlighted the significance of the company’s performance:

“In the EV segment, we became one of the few global manufacturers to achieve positive EBITDA, on the back of a higher level of localisation, aggressive cost reduction, and securing PLI benefits.”

Localization as a Strategic Advantage

Tata Motors is betting big on localization as a key pillar of its EV strategy. The company has achieved 75-80% localisation at Tier 1 supplier level, which enhances supply chain efficiency and cost control.

“This high degree of localisation provides significant agility, cost advantages, and enhanced supply chain resilience,” the company noted in its report.
“Beyond operational benefits, it also contributes meaningfully to the long-term growth of India’s EV ecosystem.”

Tata Motors believes that its localization focus not only enables competitive pricing but also strengthens its eligibility for incentives like those offered under the PLI scheme.

Future Outlook: Funding Sustainable Mobility

The financial benefits secured through the PLI scheme are expected to be reinvested into the company’s future initiatives in sustainable mobility. The automaker emphasized that the incentives will help accelerate product development and manufacturing expansion in India.

“Our strong localisation efforts have further enabled us to qualify for and secure benefits under the government’s PLI scheme, which we will use to fund our future investments into sustainable mobility,” the company stated.

With the PLI scheme offering incentives ranging between 13% to 18% for EV and hydrogen fuel cell components, and 8% to 13% for other AAT products, Tata Motors is well-positioned to capitalize on government-led support to expand its EV portfolio.