Mahindra And Mahindra (M&M) shares were on the up on early Tuesday as the company is set to reap significant benefits as it leads the way in capitalizing on the government’s production-linked incentive (PLI) program, alongside additional perks from the Faster Adoption & Manufacturing of Electric Vehicles in India (FAME India) scheme, valid until March 2024.

What Happened: Officials familiar with the implementation of the program have confirmed that Mahindra will benefit from both Auto PLI incentives and FAME-II subsidies for eligible sales until March 2024.

The Ministry of Heavy Industries, which also administers the FAME-II scheme, aims to boost electric vehicle (EV) demand in India by subsidizing sales. As a result, certain Mahindra models qualify for incentives to both manufacture and sell vehicles.

Earlier in 2024, the Ministry of Heavy Industries awarded Mahindra certificates under the auto PLI, recognizing its compliance with the Domestic Value Addition (DVA) requirements, essential for claiming PLI benefits.

See also: Tata Motors At All-Time High: What Brokerages Think About The Demerger

Mahindra & Mahindra, along with Tata Motors and Ola Electric, has received DVA certificates for 22 variants of Advanced Automotive Technology (AAT) products, with Mahindra being the pioneer in meeting the DVA criteria for the Three-Wheeler category.

The Auto PLI scheme, designed to support the domestic manufacturing of electric vehicles, offers incentives directly linked to sales volumes, promoting deep localization for AAT products, including Zero Emission Vehicles (ZEVs). The scheme, which covers five fiscal years starting from 2022-23, ensures disbursements in the following financial year, encouraging manufacturers like Mahindra to enhance their focus on local production and sales of environmentally friendly vehicles.

Price Action: M&M shares were trading 2.06% higher at ₹1,960.65 shortly after markets opened for trading on Tuesday.

Read next: Midcap Stock Sunks 20% At Open After Regulatory Action