- 23 Aug 2024
- ICICI Securities
OEM receive bulk of PLI approvals for their EV products
News: As per media sources, government has granted PLI approvals to domestic OEMs for their EV offerings. It has approved 50 applications out of 74 received with major approvals coming for Bajaj Auto, Tata Motors, M&M among others. These OEMs were successfully able to meet the domestic value addition criteria for claiming PLI incentives (ranging double digit of increment sales value).
Views: This is a positive development for the sector and shall substantially improve profitability at domestic OEM’s going forward, given the nascent stage of EV industry domestically. On the EV front, we have positive view on M&M and Tata Motors and find comport at their present valuations. As part of recent Union Budget, government has allocated ~₹ 3,500 crore as incentives under the PLI scheme for the automobiles and auto components sector for FY25E.
Impact: Positive