Maharashtra, Tamil Nadu, Haryana ride auto PLI manufacturing wave

Maharashtra, Tamil Nadu, Haryana, and Karnataka have emerged frontrunners in India's electric vehicle (EV) manufacturing ecosystem, accounting for over 200 of the 257 manufacturing facilities and engineering research and design units established by beneficiaries of the government’s Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry (PLI-Auto), according to data from the Ministry of Heavy Industries (MHI).

 

These facilities are part of efforts to localise advanced automotive technologies and establish robust domestic and global supply chains.

 

Maharashtra leads the tally with 77 facilities, followed by Tamil Nadu with 46, Haryana with 37, and Karnataka with 28.

 

Other states with significant contributions include Gujarat (12), Uttar Pradesh (13), and Uttarakhand (12). Andhra Pradesh, Jharkhand, and Rajasthan host between four and eight units, while Assam, Delhi, Kerala, and Puducherry have one facility each. 

 

Major EV companies have anchored their presence in these states. Maharashtra houses facilities for Tata Motors, Mahindra & Mahindra, and Bajaj Auto, while Tamil Nadu boasts plants of Tata Motors-JLR, Ola Electric, TVS Motor, and Ather Energy.

 

Launched in 2021 with a budgetary outlay of Rs 25,938 crore over five years, the PLI-Auto Scheme aims to advance the manufacturing of Zero Emission Vehicles (ZEVs), including Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles.

 

Incentives are applicable from FY23 to FY27, with disbursements set for FY24 to FY28. The scheme seeks to promote deep localisation of Advanced Automotive Technology (AAT) products and foster a robust domestic and global supply chain network.

 

Under the Champion OEM Incentive scheme, MHI has approved 20 applicants and their 12 subsidiaries, categorized into three segments.

 

The first includes Champion OEMs such as Ashok Leyland, Tata Motors, and Hyundai Motor India, while the second focuses on two and three-wheeler manufacturers like Bajaj Auto, Hero MotoCorp, and TVS Motor. 

 

The third segment, comprising new non-automotive investors like Ola Electric, Elest Private Limited, and Axis Clean Mobility.

 

The Component Champion Incentive scheme has also seen the inclusion of 75 companies, ranging from established giants like Maruti Suzuki, Bosch Limited, and Hero MotoCorp to specialised firms like Cummins Technologies and Lucas-TVS. Notable new entrants, including Bharat Heavy Electricals Limited and Ceat Limited.