EV incentives coming? Tata Motors PV, TVS, Ather, M&M shares among likely beneficiaries
Nomura suggested a target of Rs 812 on Ather Energy, Rs 4,662 on M&M, Rs 623 on Sona BLW, Rs 390 on Tata Motors PV and Rs 4,159 on TVS Motor.
- Mar 17, 2026,
- Updated Mar 17, 2026 4:42 PM IST
Tata Motors Passenger Vehicle Ltd (Tata Motors PV), TVS Motor Ltd, Ather Energy Ltd, Mahindra & Mahindra (M&M) and Sona BLW Precision Forgings Ltd, among others, are likely beneficiaries of EV incentives, as the Parliamentary Standing Committee on industry released its 332nd report, which included a detailed review of India’s automotive and electric vehicle policy framework.
The report, on the demands for grants for FY27 for the Ministry of Heavy Industries, flagged that EV four-wheeler penetration remains modest due to high upfront costs, and recommended introducing targeted consumer incentives for EV 4Ws to bridge the affordability gap. It recommended extending incentives for EV 2Ws and EV 3Ws until March 2028, restoring targets for e-rickshaws/e-carts and accelerating implementation of e-buses, e-trucks and e-ambulances through stricter timelines.
Nomura said EV penetration in India as of FY26 YTD stands at 6.2 per cent in two-wheelers, 61.1 per cent in 3-wheelers, 3.9 per cent in passenger vehicles (PVs), 2.4 per cent in light commercial vehicles (LCVs) and 5.9 per cent in buses.
"Implementation of recommendations could lead to a sharp acceleration in EV adoption in India. Demand incentives for EV 4Ws would improve ownership economics and lower the breakeven kms versus ICE vehicles, which could benefit OEMs such as TMPV and MM, which have high EV penetration," Nomura said.
Additionally, the extension of PM E-DRIVE incentives for EV two-wheelers until March 2028, if materialises, could help support EV 2W penetration, it said.
"We note that sharp increase in commodities and lithium prices would require 300 bps of price hike to pass on the costs. In addition, if PM E-DRIVE incentive of INR5k were to become zero, it could hit adoption in the short term. A potential relaxation in PLI eligibility norms could be a significant positive for Ather Energy in our coverage," Nomura said.
Ather, the foreign brokerage said, has strong credentials to get included under the PLI scheme as it is the leading EV-2W startup in
India with a strong focus on engineering and R&D. As the company is currently loss-making, additional 13-18 per cent incentives under PLI may help it to accelerate development of new products and technologies, it said.
Nomura said faster EV penetration will be a key positive for Sona BLW Precision Forgings Ltd, followed by Uno Minda.
Nomura suggested a target of Rs 812 on Ather Energy, Rs 4,662 on M&M, Rs 623 on Sona BLW, Rs 390 on Tata Motors PV and Rs 4,159 on TVS Motor.
Tata Motors Passenger Vehicle Ltd (Tata Motors PV), TVS Motor Ltd, Ather Energy Ltd, Mahindra & Mahindra (M&M) and Sona BLW Precision Forgings Ltd, among others, are likely beneficiaries of EV incentives, as the Parliamentary Standing Committee on industry released its 332nd report, which included a detailed review of India’s automotive and electric vehicle policy framework.
The report, on the demands for grants for FY27 for the Ministry of Heavy Industries, flagged that EV four-wheeler penetration remains modest due to high upfront costs, and recommended introducing targeted consumer incentives for EV 4Ws to bridge the affordability gap. It recommended extending incentives for EV 2Ws and EV 3Ws until March 2028, restoring targets for e-rickshaws/e-carts and accelerating implementation of e-buses, e-trucks and e-ambulances through stricter timelines.
Nomura said EV penetration in India as of FY26 YTD stands at 6.2 per cent in two-wheelers, 61.1 per cent in 3-wheelers, 3.9 per cent in passenger vehicles (PVs), 2.4 per cent in light commercial vehicles (LCVs) and 5.9 per cent in buses.
"Implementation of recommendations could lead to a sharp acceleration in EV adoption in India. Demand incentives for EV 4Ws would improve ownership economics and lower the breakeven kms versus ICE vehicles, which could benefit OEMs such as TMPV and MM, which have high EV penetration," Nomura said.
Additionally, the extension of PM E-DRIVE incentives for EV two-wheelers until March 2028, if materialises, could help support EV 2W penetration, it said.
"We note that sharp increase in commodities and lithium prices would require 300 bps of price hike to pass on the costs. In addition, if PM E-DRIVE incentive of INR5k were to become zero, it could hit adoption in the short term. A potential relaxation in PLI eligibility norms could be a significant positive for Ather Energy in our coverage," Nomura said.
Ather, the foreign brokerage said, has strong credentials to get included under the PLI scheme as it is the leading EV-2W startup in
India with a strong focus on engineering and R&D. As the company is currently loss-making, additional 13-18 per cent incentives under PLI may help it to accelerate development of new products and technologies, it said.
Nomura said faster EV penetration will be a key positive for Sona BLW Precision Forgings Ltd, followed by Uno Minda.
Nomura suggested a target of Rs 812 on Ather Energy, Rs 4,662 on M&M, Rs 623 on Sona BLW, Rs 390 on Tata Motors PV and Rs 4,159 on TVS Motor.