The Automotive Research Association of India (ARAI), a leading R&D body in the automotive sector, announced on Tuesday that Tata Motors has been awarded with the first auto production-linked incentive (PLI) certificate in the N1 category, which pertains to four-wheeled goods vehicles.

It claims that the certification has been given following the meticulously defined standard operating procedure and guidelines outlined by the Ministry of Heavy Industries (MHI)  for the automotive PLI scheme. The PLI scheme aims to bolster localisation efforts and promote exports within the automotive industry.

The development comes months after Tata Motors, along with Mahindra & Mahindra (M&M), received a domestic value certificate, marking a significant step towards qualifying for the substantial Rs 25,938 crore PLI scheme. 

Industry reports indicate that Tata Motors, based in Mumbai, is anticipating a payout of approximately Rs 600–700 crore in incentives during the current fiscal year, underscoring the potential benefits of the PLI scheme. 

The Central Government announced on August 30, announced the extension of the PLI scheme for the automotive sector by an additional year. This extension means that the originally planned five-year scheme, set to run from 2022–23 to 2026–27, will now be active until 2027–28. At the moment, the scheme's incentives only apply to certain sales of Advanced Automotive Technology (AAT) products made in India starting April 1, 2022. These products include vehicles and parts.