PLI–Auto Scheme: Progress and Impact on Advanced Automotive Manufacturing

The Production Linked Incentive (PLI)–Auto Scheme has been introduced to strengthen India’s manufacturing capabilities in Advanced Automotive Technology (AAT) products. The scheme has a total outlay of ₹25,938 crore and covers a five-year performance period from FY 2023–24 to FY 2027–28.

Incentive Disbursement

FY 2023–24 marked the first performance year of the scheme, during which ₹322 crore was disbursed to four approved applicants in FY 2024–25. For the performance year 2024–25, incentives amounting to ₹1,999.94 crore have been disbursed to five approved applicants. Cumulatively, incentives of ₹2,321.94 crore have been released as of 31 December 2025.

Electric Vehicle Coverage

Incentives under the scheme have been provided for 10,42,172 electric two-wheelers, 2,38,385 electric three-wheelers, 79,540 electric four-wheelers, and 1,391 electric buses.

Domestic Value Addition (DVA)

The PLI–Auto Scheme incentivises only products achieving a minimum Domestic Value Addition (DVA) of 50%. To date, eight Champion OEM applicants have received DVA certification for 94 variants, while ten Component Champion applicants have received certification for 37 variants, supporting the vision of AtmaNirbhar Bharat.

Investment, Sales and Employment Impact

As of 30 September 2025, the scheme has attracted cumulative investment of ₹35,657 crore and achieved cumulative determined sales of ₹32,879 crore. Additionally, 48,974 jobs have been generated under the scheme.

Conclusion

The PLI–Auto Scheme is playing a significant role in accelerating domestic manufacturing of advanced automotive technologies, promoting electric mobility, strengthening local value chains, and generating employment in the automotive sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.