Bajaj Auto shares gain amid reports of receiving approval for 13 vehicles under PLI auto scheme

Bajaj Auto has received PLI approval for the vehicles it had sought approval under the central government’s PLI scheme, according to a report by CNBC-TV18. The report, citing sources, suggested that the company met the domestic value addition criteria of the PLI scheme and will be eligible to receive incentives.

Bajaj Auto had sought PLI approval for 13 of its vehicles, including both two and three-wheelers. Bajaj Auto is the only company to have received PLI approval for all the products it had sought incentives for, according to the report.

The Union Cabinet approved the Production Linked Incentive (PLI) scheme for the Automobile and Auto Component Industry (PLI-AUTO Scheme) on September 15, 2021. The total outlay for the scheme is ₹25,938 crore for a period of five years, starting from FY 2022-23 to FY 2026-27.

Earlier in July, the Production-Linked Incentive (PLI) Auto scheme was increased to ₹3,500 crore in the Budget for 2024-25 from ₹484 crore in the revised estimates of 2023-24.

Shares of Bajaj Auto have gained over 114% in the last one year and have given Year-To-Date returns of nearly 47%. In the past six months, the stock has climbed nearly 17% and in a month the stock has gained over 5%. Extending the rally the stock has climbed over 1% in five days.

Bajaj Auto shares were trading 0.3% higher at ₹9,887.6 apiece on the NSE at 3 pm.