Tata Motors clears key step for mfg incentive
Tata Motors Ltd has received a certificate from the Automotive Research Association of India (ARAI) for domestic value addition (DVA), a key step which will qualify it to receive incentives under the government’s ₹25,938 crore PLI scheme to boost the country’s manufacturing capabilities for advanced automotive technologies. Tata Motors is only the second manufacturer after Mahindra & Mahindra Ltd to receive the eligibility certificate for the production-linked incentive (PLI) scheme.
Tata Motors was awarded the certification for its electric hatchback Tiago. Tata Motors is estimating a payout of ₹600-700 crore in incentives under the scheme this fiscal, if it’s also able to receive similar approvals for its small electric truck Ace EV, its flagship electric SUV Nexon EV and the Tigor EV in the next month or month-and-a-half.
However, a delay in further certifications could mean the automaker only has about a quarter of a year to make sales after becoming eligible for incentives, which could cap the payout it can receive, people close to the developments said on condition of anonymity. Tata Motors will also have to secure approvals from the ministry of heavy industries for the investments it has made in EV technology and production, in line with the investment criteria that will be laid down under the standard operating procedure (SOP) which is being drafted and deliberated at the moment.
Incentives will be paid out to the company after all these conditions are met. When contacted, a spokesperson for Tata Motors confirmed the company has received the ARAI certificate for the Tiago electric car.
The spokesperson, however, declined to comment on the incentives Tata Motors will receive from the PLI scheme. Meanwhile, the
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