Auto PLI scheme focuses on EVs; Tata Motors, Bajaj Auto to gain: Analysts

The government’s Rs 26,000-crore PLI (Production Linked Incentive) scheme will lay a strong foundation for rapid adoption of electric vehicles (EVs) in India, believe analysts. The move, they say, will give a fillip to two-wheeler manufacturers while incumbents will have to step up.

On Wednesday, the Union Cabinet approved a PLI scheme with a budgetary outlay of Rs 25,938 crore to boost domestic manufacturing capabilities of the automobile industry, including electric and hydrogen fuel cell vehicles.
The scheme will be effective from FY23 for five years and the base year for eligibility criteria would be FY20.

Further, to avail the scheme, original equipment manufacturers (OEMs) should have a minimum of Rs 10,000 crore in revenue and Rs 3,000 crore investment in fixed assets