With an expanded products’ portfolio and a ramp-up in production, Tata Motors is looking to generate an income of around Rs 6,500 crore through the government’s scheme to promote electric vehicle (EV) sales in the next few years.
The carmaker is hoping to generate Rs 4,000 crore from the passenger vehicle (PV) category, while the balance Rs 2,500 crore is expected to come from commercial vehicle (CV) sales under the production-linked incentive (PLI) scheme for automobiles.
The Mumbai-based company, which is the country’s largest producer of electric passenger, light and heavy commercial vehicles, received benefits of Rs 385 crore — Rs 250 crore for PVs and Rs 135 crore for CVs — under the scheme during FY25. During FY24, this stood at Rs 142 crore –Rs 102 crore for PVs and Rs 40 crore for CVs.
A Tata Motors spokesperson confirmed that the company will avail the full benefits of the PLI scheme which is offered till FY28.
“We currently have three products – Tiago, Tigor, Punch – giving a run rate of Rs 40 crore per month in PLI incentives. With the Harrier and Nexon also coming in, we will be able to take this to Rs 700 crore by FY26 end,” a company executive told FE.
A 45 kWh variant of the Tata Nexon EV received the PLI certification on June 27. The Curvv and Harrier are also in line for the benefits.
The Harrier EV, the most expensive electric vehicle by Tata Motors under the PV category and also with the biggest drive range, is expected to receive certification this year. In the next few months, Tata Motors will add the Sierra EV, a five-seater electric SUV, to the line-up.
“In subsequent years, we should be able to take the PLI benefit to Rs 2,000 crore in a year. So, Rs 3,000-4,000 crore is what we should be able to do maximum over the next couple years for the PV segment,” the executive added.
Tata Motors’ market share in the passenger EV space more than halved to 35% by the end of May 2025 from 81% clocked in FY23, according to data shared by the Federation of Automobile Dealers Association (FADA).
“In the mid- to long term, we should come back to 50% share,” Shailesh Chandra, MD, Tata Passenger Electric Mobility, said at the recently held annual Investor Day in Mumbai.
In the CV segment headed by executive director Girish Wagh, Tata Motors has three variants of the Ace mini truck and two variants each of Starbus and Ultra electric buses certified to receive benefits under the PLI scheme.
Due to the PLI incentives, the CV division saw a positive impact of 20 basis points on Tata Motors’ earnings before interest, taxes, depreciation, and amortisation (Ebitda) margins, while on the PV side, the margins impact stood at 70 basis points, the company said.
