Electric cars from Tata Motors and Mahindra could become cheaper as the two carmakers are set to receive Production-Linked-Incentive (PLI) benefits in addition to the existing Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-II) subsidy under the Ministry of Heavy Industries (MHI). That could transpire in the carmakers passing on these benefits to the consumers. As a result, there might be a slight decrease in the cost of EVs from these companies. Additionally, even Ola got this benefit of PLI which could lead to a similar outcome. Let us take a look at the details here.
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Tata and Mahindra Electric Cars Could Get Cheaper
Mahindra and Tata Motors received their certification from the Automotive Research Association of India (ARAI, Pune). This means that these companies will now gain from both incentives (PLI and FAME-II) until March 31, 2024. Thereafter, the FAME-II subsidies will go away. That leaves a window of around 25 days when the carmakers could sell their electric cars at a discount. These are incentives by the government to boost mass adoption of electrified vehicles to facilitate long-term sustainability.
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There were a total of 115 companies that submitted applications under this scheme and 85 of these were selected. This constitutes 18 original equipment manufacturers (OEMs) and 67 component companies. Such government initiatives are aimed at boosting the manufacturing of advanced automotive technology (AAT) products and attracting investments in the automotive manufacturing value chain. Hence, efforts are being made to develop an entire ecosystem around eco-friendly cars.
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Author’s Note
Having the support of the central and state governments in promoting the adoption of EVs is crucial. It also hints at the kind of future of mobility we are looking at going forward. It looks like electric cars are here to stay. We might as well make up our minds about incorporating them into our lives gradually. We have seen that diesel engines are barely able to keep up with the stringent-becoming emission norms. Hence, looking for alternatives early on is prudent. Let us keep an eye out for any discounts announced by Tata Motors and Mahindra.
