India’s PLI Auto Scheme Boosts Advanced Automotive Manufacturing
The Indian government’s Production Linked Incentives Auto Scheme (PLI Auto) is transforming the landscape of advanced automotive technology in the country. With a massive budgetary allocation of ₹25,938 crore, this scheme aims to enhance India’s manufacturing capabilities over a five-year period, spanning FY 2023-24 to FY 2027-28.
As part of this initiative, a total of ₹322 crore was paid out to four approved applicants in the first performance year, FY 2023-24. For the ongoing performance year, FY 2024-25, that figure has significantly increased, with ₹1,999.94 crore distributed among five applicants.
Incentives under the PLI Auto scheme are designed to encourage the production of environmentally-friendly vehicles, with a focus on achieving Domestic Value Addition (DVA) of at least 50%. So far, the scheme has facilitated the production of an impressive 10,42,172 units of electric two-wheelers (e-2W), 2,38,385 units of electric three-wheelers (e-3W), 79,540 units of electric four-wheelers (e-4W), and 1,391 electric buses (e-buses).
Commitment to Domestic Manufacturing
The PLI Auto scheme has already seen eight applicants from the Champion OEM category receive DVA certification for a total of 94 variants. Additionally, ten applicants from the Component Champion category have achieved certification for 37 different variants. This robust framework underscores the commitment of PLI Auto participants to fulfill Prime Minister Narendra Modi’s vision of a self-reliant India, or AtmaNirbhar Bharat.
Investment and Employment Growth
To date, the PLI Auto scheme has resulted in a cumulative investment of ₹35,657 crore and determined sales of ₹32,879 crore, demonstrating its effectiveness in stimulating the automotive sector. In terms of job creation, a total of 48,974 employment opportunities have been generated as of September 30, 2025. The cumulative incentives disbursed have reached ₹2,321.94 crore by the end of the year.
Future Projections Under the PLI Auto Scheme
Looking ahead, the PLI Auto initiative has projected a budget allocation for the forthcoming years, with substantial amounts earmarked for each financial year. The investments are expected to grow significantly, illustrating the government’s confidence in the automotive sector’s potential as a driver of economic growth.
This concerted effort to boost manufacturing capabilities and foster innovation within the automotive industry positions India as a key player on the global stage, contributing to a more sustainable future in transportation.
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