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Toyota Kirloskar Auto Parts becomes first component maker to get Auto PLI, says Ministry of Heavy Industries
Summary
- TKAP's two trans-axles for electric vehicles received approval in 2024 -- the first component in February, the second one in April.
New Delhi: Bengaluru-based Toyota Kirloskar Auto Parts Pvt Ltd has become the first component manufacturer and the fourth overall company to receive incentives under the production-linked scheme for automobiles and auto components, as per the ministry of heavy industry on Wednesday.
The ministry posted an infographic on its official handle on X about the PLI Auto scheme, and mentioned Toyota Kirloskar Auto Parts (TKAP) alongside Tata Motors Ltd, Mahindra & Mahindra Ltd, and Ola Electric Technologies Ltd, all entities which have received PLIs under the ₹25,938-crore scheme to promote domestic auto manufacturing.
Mint reached out to TKAP for confirmation and more details, and the response was awaited.
The ministry's infographic did not clarify the amount received by TKAP as incentives, or the product for which it received incentives.
Also read | India's ICE auto parts makers stare at uncertainty as new electric order rises
As per the PLI Auto portal's website, TKAP has two approved products under the scheme. The website periodically updates when a new product is approved under the scheme.
TKAP's two trans-axles for electric vehicles received approval in 2024 -- the first component in February, the second one in April.
Auto PLI scheme
Under the Centre's massive PLI Auto scheme, companies have to manufacture advanced automotive technologies for zero-emission vehicles to receive incentives. The scheme is based on sales of approved products; companies receive a share of their total sales as incentives.
But disbursements under the scheme have been slow. The ministry stated that total disbursements under the scheme in FY25 have been ₹321.99 crore. The current fiscal is also the first year of incentive disbursements under the PLI Auto scheme.
Previously, the ministry of heavy industries approved incentives worth ₹246 crore to Tata Motors and Mahindra & Mahindra on 4 January, marking the first incentives to be doled out under the scheme.
About a month later, the government also provided incentives worth about ₹73.74 crore to electric two-wheeler manufacturer Ola Electric.
Also read | Does Kia qualify for PLI? Centre wants to be sure
The ministry of heavy industries said that 13 companies had achieved the 50% domestic value addition criteria under the scheme. Domestic value addition refers to the share of locally manufactured components or raw materials in a product. The names of the companies were not disclosed.
The ministry also said 38,186 jobs had been created under the PLI Auto scheme till date.
