According to a report by Mint, the government has approved 3 more companies under its flagship production-linked incentive scheme for the automobile sector. Pinnacle Mobility, Varroc Engineering, and Napino Auto and Electronics are the latest entrants to receive product-level approvals. These additions mark a continued effort to broaden the scheme's reach beyond traditional players.
According to data from the official PLI Auto portal, EKA Mobility, a subsidiary of Pinnacle Mobility, received approval on May 20, 2025, for an electric bus model. Varroc Engineering secured approval for seven components on April 28, 2025, while Napino Auto received a nod for an engine management system on May 9, 2025.
EKA Mobility stated that the approval validates its compliance with the rigorous eligibility requirements set under the scheme. The latest approvals represent the scheme’s growing appeal to next-generation vehicle manufacturers and component developers.
The ₹25,938 crore scheme aims to establish India as a key player in the global electric vehicle market. It was notified in 2021 with the goal of incentivising advanced automotive technologies and encouraging domestic value addition.
Although 101 product models from 16 companies have received approval, only four companies have received financial incentives so far. Tata Motors, Mahindra and Mahindra, Ola Electric, and Toyota Kirloskar Auto Parts have received disbursals under the scheme.
Tata Motors and Mahindra received a combined ₹246 crore in January 2025. Ola Electric followed with ₹73.74 crore in March, and Toyota Kirloskar Auto Parts also received disbursals, although the amount was not disclosed.
Despite limited payouts, the recent approvals suggest a maturing ecosystem with increased familiarity and efficiency in navigating the certification process.
Read More: Global Laptop Makers Look Beyond China: India Gains ₹17,000 Crore Boost Under PLI Scheme.
One of the key challenges facing the scheme is that incentive disbursals are based on post-certification sales. Companies can only submit claims after demonstrating incremental sales of certified products in the following financial year. For example, sales from FY25 can be claimed in FY26, provided that at least 50% localisation is achieved.
Policy uncertainty and slowing EV sales have also impacted the disbursal process. The budget for FY26 has been significantly reduced to ₹336 crore from ₹3,150 crore in the previous year.
Randheer Singh, former director at Niti Aayog, stated that the recent momentum indicates a strategic shift. The government appears focused on expanding the scheme’s beneficiary base to include emerging mobility innovators and strategic component manufacturers. This approach may help India build resilience against global supply chain disruptions and enhance its manufacturing capabilities.
The scheme accommodates both established automobile companies and new entrants from other sectors. Original equipment manufacturers must have an annual revenue of ₹10,000 crore and commit to ₹3,000 crore in fixed investments. For component makers, the respective thresholds are ₹500 crore in revenue and ₹150 crore in investment. New entrants are required to have a global net worth of ₹1,000 crore with committed investments over five years.
Singh added that automotive testing agencies are evolving from compliance monitors into enablers of innovation. Their growing role includes setting industry standards and accelerating the development of advanced prototypes.
EKA Mobility, the newly approved subsidiary of Pinnacle Mobility, operates a manufacturing facility in Chakan near Pune. The company claims to have an order book of over 3,500 electric commercial vehicles, including buses, trucks, and light commercial vehicles. Founder and chairperson Sudhir Mehta has expressed ambitions to scale production to 10,000 electric buses annually by FY27.
The approval of three additional companies under the PLI Auto scheme signals a renewed push to diversify and expand the programme. With growing experience among participants and evolving support from the government and testing agencies, the scheme may yet realise its vision of transforming India into a global electric vehicle manufacturing hub.
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Published on: May 23, 2025, 2:13 PM IST
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