Centre charges up EV space with PLI approvals
electric vehicle manufacturing. The remaining 24 applications are in process.
The approvals on Wednesday are likely to help the companies partially offset losses they are incurring in manufacturing EVs due to low volumes currently. Among the companies, Bajaj Auto is the sole automaker to get approvals for all the 13 applications filed for its electric scooter Chetak and three-wheelers.
Mahindra & Mahindra got approvals for 16 out of 23 applications, Tata Motors 15 out of 27, Ola Electric four out of five, TVS Motor two out of five, and Eicher which applied for one didn't get an approval, according to an internal document showing the DVA (domestic value addition) application status.
Under the PLI incentive scheme, an automaker can receive a government grant of 13-15% of the sales value of EVs during a year. This typically boosts the company's total revenue and helps offset the higher costs associated with investing in new technology, thereby bridging the margin gap between ICE (internal combustion engine) and EVs.
Furthermore, if a company achieves sales of more than ₹10,000 crore within five years of the PLI period, it becomes eligible for an additional 2% government support.
The 'sales value linked' scheme is applicable on battery electric vehicles, and hydrogen fuel cell vehicles across segments spanning two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, etc, and any other advanced automotive technology.
Pune-based Bajaj Auto accrued in the PLI benefits of the sales value as per the
