Maharashtra, Tamil Nadu Remain Leaders In EV Manufacturing: Data

Maharashtra, Tamil Nadu Remain Leaders In EV Manufacturing: Data

Maharashtra and Tamil Nadu remained the biggest beneficiaries of the Union government’s Production Linked Incentives (PLI) scheme for the automobile sector. The latest data from the Ministry of Heavy Industries indicated that these states became the hotspots for investments in electric vehicle (EV) manufacturing under the scheme.  Union Minister for Heavy Industries and Steel HD Kumaraswamy in a latest statement before the Parliament informed the House about the data.

The PLI Scheme (Auto) is focused on Zero Emission Vehicles (ZEVs) i.e. Battery Electric Vehicle and Hydrogen Fuel Cell Vehicle. The incentive under the scheme is applicable from FY 2022-23 to FY 2026-27 (5 years’ period) and the disbursement is applicable in the subsequent financial year i.e. from FY 2023-24 to FY 2027-28.

The minister said that under the scheme, 257 manufacturing units were approved. He said that 82 applicants got approval under the PLI-Auto scheme to develop multiple manufacturing facilities/engineering research and design units across India, as per the data.

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These 257 units are spread across 17 states. Out of this, seven states hold the maximum number of facilities. These states are Maharashtra hosting 77 facilities, marking the highest share, followed by Tamil Nadu (46), Haryana (37), Karnataka (28), Uttar Pradesh (13), and Gujarat and Uttarakhand (12).

The minister said that to promote EV manufacturing, the government also introduced the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). This scheme was notified on 15th March 2024 to promote the manufacturing of electric passenger cars in India. Under the scheme, approved applicants will be allowed to import Completely Built-in Units (CBUs) at a reduced customs duty of 15% for five years, subject to the setting up of electric passenger car manufacturing facilities in India.

PLI-Auto Scheme

The parliament found that the PLI-Auto Scheme, launched on 15th September 2021, allocated Rs. 25,938 crores for five years. As of 28th November 2024, no disbursement had been made to applicants’ claims received under this scheme. The parliament also found that the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) entails no financial outlay for applicants. The scheme only envisages the benefit of a reduced basic customs duty rate on the import of electric passenger cars, subject to compliance with the scheme guidelines. The PLI-ACC scheme is in its gestation period until December 2024. Therefore, no disbursement has taken place so far. Government data shows that approved firms hail from Gujarat (2), Karnataka (1), and Tamil Nadu (1).

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Electric Vehicle Production: A Brief Analysis

The parliamentary data shared by the minister analyzed and found faster growth in two-wheeler electric vehicles (EVs) compared to three-wheeler electric vehicles. The data shows that the annual production of electric vehicles saw an increase of 948.42 EVs in the financial year (FY) 2023-24, compared to the previous year (2022-23), which saw annual production reach 728.21 EVs.