logo
PLI-Auto adds three more firms to roster

PLI-Auto adds three more firms to roster

Mint22-05-2025

New Delhi: The Centre has approved products made by three more companies—Pinnacle Mobility, Varroc Engineering, and Napino Auto and Electronics—under its flagship production-linked incentive (PLI) scheme for the auto sector, according to data from the government's PLI-Auto portal. he move comes despite limited payouts so far and a sharp cut in the scheme's disbursal target for FY26.
According to the portal, EKA Mobility, a subsidiary of Pinnacle Mobility, was approved on 20 May for an electric bus model. Varroc got the green light for seven components on 28 April, while Napino Auto was cleared for an engine management system on 9 May.
'This recognizes EKA's compliance with the stringent eligibility requirements laid out under the PLI scheme for advanced and indigenized electric vehicle platforms,' the company said in a 21 May statement. Varroc and Napino did not respond to Mint's queries.
The fresh approvals mark a renewed push to expand the ₹ 25,938 crore PLI-Auto scheme beyond legacy players. But only four companies have received payouts so far, and the budget estimate for FY26 has been cut to ₹ 336 crore from ₹ 3,150 crore last year.
These approvals also reflect the growing familiarity with the scheme's requirements, according to Ashim Sharma, senior partner and Business Unit head, Nomura Research Institute Solutions and Consulting.
'Additionally, this also shows that all stakeholders have now completed the learning curve that comes with schemes such as the PLI-Auto scheme. It is likely that companies are now able to ensure that their documentation and other requirements are more 'first time right',' said Sharma.
Notified in 2021, the PLI-Auto scheme aims to boost domestic manufacturing of advanced automotive technologies and position India as a global electric vehicle (EV) hub. Of the 115 applicants, 82 were shortlisted as 'Champion OEMs' and 'Component Champions' in early 2022, including Pinnacle, Varroc and Napino.
The government began approving individual products under the scheme in June 2023, following the initial shortlisting of firms.
But shortlisting is only the first step. To claim incentives, companies must secure product-level approvals from designated automotive testing agencies, based on compliance with technology-readiness and domestic value addition norms. If a vehicle or component is approved by these agencies, the company receives a certificate making the model eligible for incentives under the scheme.
So far, 101 product models across 16 companies have received such approval.
Yet, only Tata Motors, Mahindra & Mahindra, Ola Electric, and Toyota Kirloskar Auto Parts have received actual payouts. Tata Motors and Mahindra were granted about ₹ 246 crore in January 2025, followed by ₹ 73.74 crore to Ola Electric in March. The ministry of heavy industries said on 26 March that Toyota Kirloskar Auto Parts had also received disbursals, but did not disclose the amount.
As Mint reported on 28 February, policy uncertainty has weighed on EV sales, in turn delaying PLI disbursals, which are contingent on post-certification sales.
The scheme provides incentives on incremental sales achieved after certification, with claims submitted the following fiscal. For instance, FY25 sales would be eligible for claims filed in FY26. Certification requires proof of at least 50% localisation in approved models.
The recent acceleration in PLI-Auto approvals marks a calibrated push towards reshaping India's role in the global EV and auto component value chain, said Randheer Singh, former director with the Niti Aayog.
"It reflects the government's intent to expand the beneficiary base beyond legacy OEMs to include next-gen mobility innovators and strategic component makers, a signal that India wants to hedge against global supply disruptions and diversify its manufacturing bets," Singh said.
The scheme caters to both incumbent auto firms and new entrants from other sectors. OEMs must have annual revenues of at least ₹ 10,000 crore and invest ₹ 3,000 crore in fixed assets. For component makers, the thresholds are ₹ 500 crore in revenue and ₹ 150 crore in investment.
New entrants from outside the auto sector need a global net worth of ₹ 1,000 crore and must commit investment over five years.
"Beyond certification, automotive testing agencies are becoming gatekeepers of technology readiness and enablers of deep localisation. Their role must now evolve from compliance monitoring to innovation facilitation, co-developing standards with industry and fast-tracking advanced prototypes," said Singh.
EKA Mobility, which recently secured approval under the scheme, has an order book of over 3,500 electric commercial vehicles, including trucks, buses and light commercial vehicles. It operates a manufacturing plant in Chakan, near Pune. Founder and chairperson Sudhir Mehta has reportedly said the company aims to produce 10,000 electric buses annually by FY27.
In FY26, the auto component industry's revenues are likely to grow 8-10%, compared to the highs of approximately 14% in FY24, said ratings agency Icra in a February 2025 estimation.
The ratings agency also projected the Indian passenger vehicle industry volumes to grow by 4-7% in FY26, a pickup from the muted 0-2% increase seen in FY25.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Power shift: How Tesla's turmoil is steering global capital towards India
Power shift: How Tesla's turmoil is steering global capital towards India

Economic Times

time2 hours ago

  • Economic Times

Power shift: How Tesla's turmoil is steering global capital towards India

Getty Images (Image for representation) The Musk–Trump standoff may have caused a ripple of fear in US markets, but for India, it is a signal to act. In the high-stakes arena of global business and politics, few collisions make markets tremble like the fallout between a tech titan and a political juggernaut. This is exactly what unfolded in early June 2025 when Elon Musk, the CEO of Tesla and SpaceX, clashed publicly with former U.S. President Donald Trump. The result? This was a devastating blow to Tesla's stock, which plunged by over 14% in a single day, wiping out an estimated $150 billion in market capitalisation. This was not just a stock market blip; it was the most severe single-day loss for Tesla since its listing and one of the most dramatic wealth erasures in corporate catalyst? Trump's verbal attacks on Musk during a campaign rally, accusing him of being "disloyal" and threatening to cut off federal contracts and regulatory support for Tesla and SpaceX if he regains the presidency, were also included. Investors responded with a swift selloff, and Tesla's valuation fell below the trillion-dollar mark. Global markets watched in shock as this political-personal feud spilled over into financial amid this volatility lies a powerful truth: in global disruption, emerging markets like India often find their greatest opportunities. As the U.S. grapples with political instability and tech industry turbulence, India stands poised to benefit from capital reallocation, tech realignment, and supply chain diversification. While damaging to U.S. markets, the Tesla shockwave could become a springboard for India's clean-tech and high-growth sectors. India has been on an accelerated path toward electrification, and Tesla's current struggles have only sharpened the global spotlight on India's domestic electric vehicle (EV) ecosystem. As Tesla faces regulatory headwinds and reduced investor confidence, India's homegrown EV sector is booming, powered by market demand and policy incentives. In the fiscal year 2024–25, India's EV market crossed a new milestone with over 1.7 million electric vehicles sold, reflecting a 96% year-on-year increase. Leading the charge are Indian companies such as Tata Motors, Mahindra Electric, and Ola Electric, which have committed billions of rupees to expand their EV product lines, charging infrastructure, and battery assembly capabilities. The Indian government's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles(FAME-II) scheme and the Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell Battery Storage worth ₹18,100 crore have further catalysed industry momentum. States such as Tamil Nadu, Gujarat, and Maharashtra have introduced EV-specific policies offering land, tax exemptions, and power subsidies to manufacturers. As global investors rethink high-risk bets in politically volatile environments such as the U.S., they are increasingly drawn to India's policy stability, market scale, and rising consumer at Morgan Stanley and Goldman Sachs recently highlighted India's EV sector as a 'structural investment theme' for the next decade. Tesla's hiccups may prompt global auto majors to partner with or invest in Indian EV startups as a hedge against Western uncertainty, creating an entirely new lane for India's industrial valuation collapse was not just a corporate crisis; it exposed the deeper fragility of global supply chains tethered to geopolitical risks. Tesla's core supply lines depend heavily on rare earth elements (REEs), lithium, and semiconductors, many of which are sourced from China, South America, or politically sensitive U.S.–China tensions rising and Trump threatening tighter trade policies, the world's clean energy future needs new anchors—and India is stepping into that vacuum. In response to the rising global demand and strategic concerns, India unveiled its Critical Minerals Strategy (2023), identifying 30 minerals, including lithium, cobalt, and nickel, as essential for national security and industrial Geological Survey of India discovered a significant 5.9-million-ton lithium reserve in Jammu and Kashmir—India's first—and auction processes are already underway for its commercial extraction. Meanwhile, India's semiconductor manufacturing mission—backed by a ₹76,000 crore incentive package—has begun bearing fruit. Micron Technology, in collaboration with Tata Group, is establishing chip assembly and testing units in Gujarat. These developments are being closely monitored by global players looking to diversify away from China and the U.S. India's proven IT prowess, skilled workforce, and competitive cost structures provide it with a unique advantage in scaling both battery and semiconductor supply to BloombergNEF, global clean energy investments are expected to cross $2 trillion in 2025, and India is projected to attract nearly $60 billion, up from $45 billion in 2024. The Tesla–Trump debacle added urgency to this diversification. Indian companies working in battery storage, solar inverters, EV components, and green hydrogen can now tap into redirected global capital that would have otherwise flown into American India's space technology sector, often overlooked, is quietly booming. As Trump's remarks also targeted SpaceX and its satellite network Starlink, Indian startups like Skyroot Aerospace, Agnikul Cosmos, and Pixxel are seizing the moment to attract international investments. With 30 private satellite launches scheduled for 2025 and a supportive government ecosystem, India's space economy could grow to $13 billion by 2026, up from $7 billion in 2022, according to the Musk–Trump standoff may have caused a ripple of fear in U.S. markets, but for India, it is a signal to act. As Western investors reassess the risks of politicised corporate battles, India offers a pragmatic alternative rooted in stable policy, scalable infrastructure, and strategic clarity. The Tesla fallout, while costly for America's most iconic EV brand, might accelerate India's emergence as a global industrial and investment powerhouse. In the wreckage of a $150 billion loss lies the blueprint for India's trillion-dollar leap. The contributors is Assistant Professor and Research Supervisor, St. Thomas College (Autonomous), Thrissur – Kerala.

Power shift: How Tesla's turmoil is steering global capital towards India
Power shift: How Tesla's turmoil is steering global capital towards India

Time of India

time2 hours ago

  • Time of India

Power shift: How Tesla's turmoil is steering global capital towards India

EV calculator How much will I save if I choose an electric vehicle? SELECT vehicle type Calculate India's EV Ecosystem: Charging Ahead as Tesla Slows Down Live Events Supply Chain and Clean-Tech Investment: India as the Next Global Pivot Disruption for Some, Direction for Others (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel In the high-stakes arena of global business and politics, few collisions make markets tremble like the fallout between a tech titan and a political juggernaut. This is exactly what unfolded in early June 2025 when Elon Musk , the CEO of Tesla and SpaceX, clashed publicly with former U.S. President Donald Trump . The result? This was a devastating blow to Tesla's stock, which plunged by over 14% in a single day, wiping out an estimated $150 billion in market capitalisation. This was not just a stock market blip; it was the most severe single-day loss for Tesla since its listing and one of the most dramatic wealth erasures in corporate catalyst? Trump's verbal attacks on Musk during a campaign rally, accusing him of being "disloyal" and threatening to cut off federal contracts and regulatory support for Tesla and SpaceX if he regains the presidency, were also included. Investors responded with a swift selloff, and Tesla's valuation fell below the trillion-dollar mark. Global markets watched in shock as this political-personal feud spilled over into financial amid this volatility lies a powerful truth: in global disruption, emerging markets like India often find their greatest opportunities. As the U.S. grapples with political instability and tech industry turbulence, India stands poised to benefit from capital reallocation, tech realignment, and supply chain diversification. While damaging to U.S. markets, the Tesla shockwave could become a springboard for India's clean-tech and high-growth has been on an accelerated path toward electrification, and Tesla's current struggles have only sharpened the global spotlight on India's domestic electric vehicle (EV) ecosystem. As Tesla faces regulatory headwinds and reduced investor confidence, India's homegrown EV sector is booming, powered by market demand and policy the fiscal year 2024–25, India's EV market crossed a new milestone with over 1.7 million electric vehicles sold, reflecting a 96% year-on-year increase. Leading the charge are Indian companies such as Tata Motors, Mahindra Electric, and Ola Electric, which have committed billions of rupees to expand their EV product lines, charging infrastructure, and battery assembly Indian government's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles(FAME-II) scheme and the Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell Battery Storage worth ₹18,100 crore have further catalysed industry momentum. States such as Tamil Nadu, Gujarat, and Maharashtra have introduced EV-specific policies offering land, tax exemptions, and power subsidies to manufacturers. As global investors rethink high-risk bets in politically volatile environments such as the U.S., they are increasingly drawn to India's policy stability, market scale, and rising consumer at Morgan Stanley and Goldman Sachs recently highlighted India's EV sector as a 'structural investment theme' for the next decade. Tesla's hiccups may prompt global auto majors to partner with or invest in Indian EV startups as a hedge against Western uncertainty, creating an entirely new lane for India's industrial valuation collapse was not just a corporate crisis; it exposed the deeper fragility of global supply chains tethered to geopolitical risks. Tesla's core supply lines depend heavily on rare earth elements (REEs), lithium, and semiconductors, many of which are sourced from China, South America, or politically sensitive U.S.–China tensions rising and Trump threatening tighter trade policies, the world's clean energy future needs new anchors—and India is stepping into that vacuum. In response to the rising global demand and strategic concerns, India unveiled its Critical Minerals Strategy (2023), identifying 30 minerals, including lithium, cobalt, and nickel, as essential for national security and industrial Geological Survey of India discovered a significant 5.9-million-ton lithium reserve in Jammu and Kashmir—India's first—and auction processes are already underway for its commercial extraction. Meanwhile, India's semiconductor manufacturing mission—backed by a ₹76,000 crore incentive package—has begun bearing fruit. Micron Technology, in collaboration with Tata Group, is establishing chip assembly and testing units in Gujarat. These developments are being closely monitored by global players looking to diversify away from China and the U.S. India's proven IT prowess, skilled workforce, and competitive cost structures provide it with a unique advantage in scaling both battery and semiconductor supply to BloombergNEF, global clean energy investments are expected to cross $2 trillion in 2025, and India is projected to attract nearly $60 billion, up from $45 billion in 2024. The Tesla–Trump debacle added urgency to this diversification. Indian companies working in battery storage, solar inverters, EV components, and green hydrogen can now tap into redirected global capital that would have otherwise flown into American India's space technology sector, often overlooked, is quietly booming. As Trump's remarks also targeted SpaceX and its satellite network Starlink, Indian startups like Skyroot Aerospace, Agnikul Cosmos, and Pixxel are seizing the moment to attract international investments. With 30 private satellite launches scheduled for 2025 and a supportive government ecosystem, India's space economy could grow to $13 billion by 2026, up from $7 billion in 2022, according to the Musk–Trump standoff may have caused a ripple of fear in U.S. markets, but for India, it is a signal to act. As Western investors reassess the risks of politicised corporate battles, India offers a pragmatic alternative rooted in stable policy, scalable infrastructure, and strategic clarity. The Tesla fallout, while costly for America's most iconic EV brand, might accelerate India's emergence as a global industrial and investment powerhouse. In the wreckage of a $150 billion loss lies the blueprint for India's trillion-dollar contributors is Assistant Professor and Research Supervisor, St. Thomas College (Autonomous), Thrissur – Kerala.

Mukesh Ambani gives Rs 1510000000 ‘Guru Dakshina' to…, he didn't take admission in IIT-Bombay because…
Mukesh Ambani gives Rs 1510000000 ‘Guru Dakshina' to…, he didn't take admission in IIT-Bombay because…

India.com

time5 hours ago

  • India.com

Mukesh Ambani gives Rs 1510000000 ‘Guru Dakshina' to…, he didn't take admission in IIT-Bombay because…

Reliance Industries Chairman and Managing Director, Mukesh Ambani, has announced an unconditional grant of Rs 151 crore to the Institute of Chemical Technology (ICT), Mumbai, his alma mater from the 1970s. On Friday, Ambani spent over three hours at the institute, formerly known as the University Department of Chemical Technology (UDCT), attending an event to unveil Divine Scientist , the biography of Professor MM Sharma. When speaking of 'Guru Dakshina', Ambani announced the unconditional grant of Rs 151 crore to ICT according to the instructions of Prof. Sharma. Why Didn't Mukesh Ambani Choose IIT-Bombay? Ambani said, 'Coming to the UDCT campus always feels like visiting a sacred temple. Professor Sharma, I honor you as my most respected teacher, my guide, and a source of inspiration.' Praising Patil, he added, 'Writing about the life of a great personality like Sharma is an immensely challenging task.' Talking about his decision, Ambani said, 'I chose UDCT over IIT-Bombay.' He shared that his decision became firm after attending Sharma's first lecture. 'I realized he was an alchemist not of metals, but of minds. He possesses the ability to transform curiosity into knowledge, knowledge into commercial value, and both knowledge and commercial value into everlasting wisdom.' Ambani credited Professor Sharma for the growth of India's chemical industry and referred to him as the 'National Guru.' Prof. Sharma impressed upon the policymakers that the only way for India to grow was to unshackle Indian industry from license-permit-raj which will allow Indian players to build scale, reduce dependence on imports and compete globally. 'Like my father Dhirubhai Ambani, he had a burning desire to change Indian industry from scarcity to global leadership,' said Ambani. He further added, 'These two bold visionaries believed that science and technology, in alliance with private entrepreneurship, would open the floodgates of prosperity.' (With Inputs From ANI)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store