Tata Motors, M&M, three others may raise ₹2,000 cr and PLI claims
,
Mahindra & Mahindra
(M&M),
Bajaj Auto
,
Ola Electric Technologies
and
TVS Motor Company
could raise claims totalling more than ₹2,000 crore this fiscal year under the
Production Linked Incentive
(PLI) scheme for automobiles, according to a government assessment.
Officials said these claims are for investment and incremental sales goals achieved in the fiscal year ended March 31.
Bajaj Auto
is expected to make the highest claim of ₹630 crore, followed by
Tata Motors
at ₹409 crore, and Ola Electric at ₹380 crore, officials said. TVS Motor and M&M could raise claims of ₹330 crore and ₹283 crore, respectively.
Despite the substantial claims, it would still fall short by ₹702 crore from the FY26 Budget estimates.
"Companies have more time to seek claims," a senior official told ET, noting beneficiaries can submit applications till September.
Heavy industries minister HD Kumaraswamy reviewed the PLI scheme's performance on Thursday. He directed the ministry to ensure handholding of applicants on operational aspects, claims, and ensuring domestic value addition (DVA), according to officials.
"The scheme has so far attracted significant domestic investments worth ₹29,576 crore until March 2025," Kumaraswamy said in a statement after the review.
"Going forward, we are committed to regular industry workshops, faster claim disbursals, and robust support to stakeholders paving the road for a self-reliant and globally competitive auto sector," he added.
Officials said claims worth ₹322 crore were released under the scheme goals achieved in FY24 to Tata Motors, M&M, Ola Electric, and
Toyota Kirloskar Auto Parts
(TKAP). This is despite more than 80 companies initially getting approvals under the scheme.
The Centre approved the PLI for automobiles in September 2021 with a ₹25,938 crore budgetary outlay. The scheme aims to overcome cost disabilities of the domestic industry for manufacturing Advanced Automotive Technology (AAT) products in India.
The industry needs to make fresh investments for indigenous manufacturing of AAT products and create jobs to claim incentives.
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Economic Times
2 hours ago
- Economic Times
Samsung's FY26 Q1 exports fall 20% as PLI benefits end; Apple, Dixon may be next
Reuters A store selling Samsung mobile phones New Delhi: Samsung's exports of smartphones slumped by almost a fifth — both year-on-year and sequentially — in the first quarter of FY26, likely because the South Korean major is no longer eligible for benefits under the smartphone production-linked incentive (PLI) scheme since April. According to industry executives, without the PLI incentives, Samsung may have lost export competitiveness and thus recalibrated its export plans. And the same could happen to Apple and Dixon Technologies – two other major beneficiaries of the scheme – after March 2026. 'The combined effect of all three – who have been the flagbearers of the PLI scheme and local manufacturing and exports – has the potential to derail India's bid to become a smartphone manufacturing hub for global markets,' an industry executive said, asking not to be exported smartphones worth about $950 million in the June quarter, according to industry is down from $1.17 billion a year earlier and $1.2 billion in January-March. Without the smartphone PLI, India suffers a manufacturing cost differential, or disability, of 10% compared with Vietnam, and 15% with China, experts with PLI benefits of 4-6%, there was some disability, but still, brands and manufacturers were diversifying production and increasing exports from India considering the geopolitical situation, they being able to compete against the likes of China and Vietnam would be disastrous at a time all three countries are trying to get a favourable trade deal with the US, and more companies are examining a China+1 strategy amid continuing geopolitical tensions, experts industry has been sounding out the government for an extension of the smartphone PLI scheme beyond FY26 to sustain the momentum of growing exports, which zoomed to $24.1 billion in FY25, from just $200 million in the government does accept the competitive disadvantage without the scheme incentives, it is yet to take a call on an extension. 'The scheme tenure was fixed, and we have to see the legalities if it can be extended or not. But we do intend to support the industry,' an official told ET on condition of recently launched a Rs 22,919-crore components incentive scheme to build on the success of the smartphone PLI scheme and increase local value this latest initiative could suffer if manufacturers back off on further investments in local production owing to disabilities compared to competing geographies, experts the PLI years, Samsung increased smartphone exports from India to $4.4 billion in FY25, from $1.2 billion in company is seeking incentives under the scheme in the current fiscal in lieu of the second year, when it did not get them as it failed to meet the targets. People familiar with the matter said Samsung faced Covid-related issues in the second year of the scheme, that is, electronics major's argument is that if other PLI applicants could get an extension owing to Covid restrictions, it, too, should be given a year more, industry executives said.A query sent to Samsung regarding drop in exports in the first quarter of FY26 remained unanswered at the time of going to was the only company to meet PLI targets and avail incentives for the first year of the scheme – FY21. It had selected FY21-FY25 for its five-year PLI as it was already present in the country and could utilise the existing brownfield and others had to build factories and, due to Covid restrictions, they failed to complete the operations on time and sought a year's extension under the force majeure clause. The government agreed and extended the scheme tenure to six years – till FY26 – with a condition that companies can seek incentives for any five consecutive years of their choice within the time has been the flagbearer of smartphone exports, followed by Samsung and Dixon, which manufacturers devices for Google, Motorola and Xiaomi, among others. Motorola has been increasing exports from India, particularly to the industry estimates Samsung can manufacture 70 million phones annually in India, and the capacity can be further expanded rapidly. Its current domestic production is about 45 million reported earlier that Samsung exported more than Rs 30,000-crore ($3.5 billion) worth of smartphones from India in FY25, compared to an estimated $35 billion from Vietnam, with the US accounting for $10 have been talks about Samsung exporting more from India, though that hinges on India maintaining its competitiveness against Vietnam, which is currently the hub of the company's manufacturing and exports. Exports now outpace domestic smartphone demand – which has remained sluggish over the last couple of years – and are the primary driver of production growth.
Time of India
2 hours ago
- Time of India
Bajaj Auto to infuse more mojo into 125cc motorcycles this fiscal
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Also read: Bajaj Auto on the go with its GoGo electric 3-wheeler brand Chairman, Niraj Bajaj , has said in the report that sales of the 'strategically important and focused segment' of the 125cc+ motorcycle segment hit a new peak. Pulsar, the flagship brand, remains a strong force in the sports motorcycle segment, 'leading the charge as a symbol of Indian engineering and excellence'. Targeted actions While overall domestic motorcycles performance was subdued by a relatively weak second half that saw a loss of market share, 'we view this as a critical area and are taking clear and targeted actions to regain momentum'. Sales of the recently launched Freedom 125 have also been tepid but Bajaj Auto has reiterated that the world's first CNG motorcycle represents its commitment to 'breakthrough innovation while reimagining mobility'. Freedom 125, the company states, is more than a bike; it is a statement of how engineering and environmental stewardship can go hand in hand. That your Company not only navigated this transition but delivered its best-ever performance is a testament to the very versatile nature of our business, which drives the resilience of our results. When one engine slows, the other steps up — allowing the enterprise to stay on Bajaj The preceding fiscal also saw domestic demand slowing down for Bajaj Auto in the second half while exports accelerated sharply. 'That your Company not only navigated this transition but delivered its best-ever performance is a testament to the very versatile nature of our business, which drives the resilience of our results. When one engine slows, the other steps up — allowing the enterprise to stay on course,' said the Chairman. According to him, the other bit of good news was the 'surefooted progress' that Bajaj Auto had made on building the electric vehicles business which now account for 20% of domestic sales. More importantly, Chetak achieved segment leadership position on electric scooters during the fiscal that went by. Chetak on a roll 'This was the year in which Chetak hit leadership in the electric scooters market as volumes more than doubled year-on-year. The launch of the affordable variant earlier in the year and rapid expansion of the network to over 4,000 touchpoints were key interventions that propelled the business to leadership,' said Niraj Bajaj. The company's partner brands, KTM and Triumph, clocked nearly one lakh units domestically, reflecting the growing preference for premium mobility and 'our decisive presence' in this space. 'Buoyed by the strength of an expanded/upgraded portfolio and a wider reach in terms of city and dealership coverage, the interventions are yielding encouraging results,' he added. Also read: Bajaj, KTM will pull out all the stops in new revival plan The electric three-wheeler business, which is under two years old, rapidly scaled up too with a three-fold increase in market share and further going on to achieve segment leadership at the start of FY26. Exports also staged a strong comeback with double-digit growth that was led by Latin America, which continued its strong momentum, registering yet another high over what was already a record performance last year. 'Our brands continue to enjoy deep trust and loyalty among customers, helping us reclaim volumes and drive share across markets,' he said. Bullish on Brazil The recently launched Brazil business has grown scale quarter after quarter particularly after supplies were unlocked following the commissioning of the first company-owned overseas assembling facility in Manaus in June 2024. The business ended the year at a quarterly run rate that was in excess of what it sold for all of the previous financial year. 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'As I reflect on the year gone by, for me it has brought home a profound business truth - in uncharted waters, competitiveness comes not from always having the wind at your back, but from being able to adroitly adjust your sails as the winds shift,' he observed.
Hindustan Times
4 hours ago
- Hindustan Times
14 PLI sectors protected under trade agreement between India and UK
The India-UK free trade agreement has provisions to protect the country's 14 production-linked incentive (PLI) sectors such as electronics, mobile manufacturing, white goods, drugs intermediaries, auto components, specialty steel, solar modules and drones for five to 10 years, commerce ministry officials said on Sunday. The India-UK comprehensive economic and trade agreement (CETA), signed on Thursday, provides for gradual tariff reduction on India's strategically important products, particularly those where domestic capacity is being built under flagship initiatives such as the Make in India scheme and PLI. Thus, they have protection at least between 5 and 10 years, said the officials cited above, requesting anonymity. Also read: Pastries, pet food, alcohol: What will get cheaper after India-UK trade deal 'Strategically important products, particularly those where domestic capacity is being built under flagship initiatives like PLI, concessions are made under CETA over periods ranging from five to ten years with gradual tariff reduction,' an official aware of the matter said. According to CETA's schedules of the tariff commitments, while pushbutton type of telephone sets from the UK will see tariff elimination from the date of entry into force (EIF) of the agreement, basic cell phones (HS code 85171400) will have duty protection for 10 years and smartphones (HS code 85171300) are in the exclusion list. Both basic cell phones and smartphones currently attract 20% customs duty in India. A 10-year protection means the duty shall be removed in 10 equal annual instalments beginning on the date of entry into force of CETA. Also read: India to have freer access to UK market as landmark deal signed Mobile phone manufacturing, a key component of the large-scale electronics manufacturing (LSEM) under the production linked incentive (PLI) scheme. Launched in April 2020, LSEM has already transformed India from a net importer of smart phones to a net exporter. The scheme helped India to become the second largest mobile manufacturer in the world with ₹5.45 lakh crore worth of production in 2024-25, including ₹2 lakh crore of exports in that financial year. Similarly, a 10-year protection is available for domestic manufacturers of drones (remote-controlled unmanned aircraft), which is the fourteenth sector under the PLI scheme. The other sectors under are critical key starting materials and active pharmaceutical ingredients (APIs), medical devices, automobiles and auto components, pharmaceuticals, specialty steel, telecom and networking products, electronic and technology products, white goods, food products, manmade fibre segments and technical textiles, high efficiency solar PV modules, and advanced chemistry cell batteries. Experts said CETA would not have much impact on PLI sectors as manufacturing is a costly preposition in the UK and it cannot compete with India's cheap labour. 'India's PLI sectors have not made any remarkable achievements so far, other than the smartphone manufacturing,' said Ajay Srivastava, founder of Global Trade Research Initiative (GTRI). India has, however, protected most of its key sectors, he added. Even as India commits to reduce or eliminate import tariffs on nearly 90% of goods originating from the UK under CETA, it 'strategically' excluded sensitive items such as tea, coffee, and gold. India currently imposes steep duties of 110% on coffee, tea, and sausages. Srivastava is a former Indian Trade Service officer and was part of the country's negotiating teams for various FTAs. 'These items are excluded from any tariff relief under CETA, reflecting India's effort to protect domestic farmers and food processors. While CETA opens the door for UK exporters across a range of sectors, India has carefully tailored its concessions to balance foreign access with domestic sensitivities,' he said. Government data show that India has safeguarded its sensitive sectors such as dairy, cereals, millets, pulses, vegetables, jewellery, lab-grown diamonds, certain essential oils, critical energy fuels, marine vessels, worn clothing, critical polymers and optical fibres. According to Srivastava, India's concessions on the automobile sector will set a precedent for other future FTAs. 'For the first time in any FTA, India will lower duties on UK-built passenger vehicles under a Tariff Rate Quota (TRQ). Duties on luxury and mid-size cars will drop from 100%+ to 10% over 15 years, within quotas rising from 10,000 to 19,000 units by year five. This opens a path for UK brands like Jaguar and Land Rover, and sets a precedent for future auto concessions,' he said. India will cut duties on alcoholic drinks from the UK—including whisky, vodka, and gin—only for bottles priced above $6 per 750ml. For qualifying imports, tariffs will fall from 110% to 75% in year one, and to 40% by year 10, he said. Some lines drop from 150% to 75%. Over 30 products are covered, giving premium UK spirits better access while shielding low-cost segments, he added.
