PLI Auto Scheme Drives INR 35,657 Crore Investment, Expands EV Manufacturing

The Production Linked Incentive (PLI) Scheme for the automobile sector has recorded cumulative investments of INR 35,657 crore, with incentives amounting to INR 2,321.94 crore disbursed as of December 31, 2025, according to the Ministry of Heavy Industries.

The PLI–Auto Scheme, aimed at strengthening domestic manufacturing of Advanced Automotive Technology (AAT) products, has a total outlay of INR 25,938 crore and a performance period of five years from FY 2023–24 to FY 2027–28.

FY 2023–24 marked the first performance year under the scheme, during which incentives worth INR 322 crore were disbursed to four approved applicants in FY 2024–25. For the performance year FY 2024–25, incentives totalling INR 1,999.94 crore have been disbursed to five approved applicants so far.

Under the scheme, incentives have been extended for 13,61,488 electric vehicles, including 10,42,172 electric two-wheelers, 2,38,385 electric three-wheelers, 79,540 electric four-wheelers, and 1,391 electric buses.

The PLI–Auto Scheme mandates a minimum 50 percent Domestic Value Addition (DVA) for eligibility. As of date, eight Champion OEM applicants have received DVA certification for 94 vehicle variants, while ten Component Champion applicants have received certification for 37 component variants.

Key beneficiaries under the scheme include Tata Motors, Mahindra & Mahindra, Bajaj Auto, TVS Motor Company, Ola Electric Technologies, and Toyota Kirloskar Auto Parts.

As of September 30, 2025, the scheme has resulted in cumulative incremental sales of INR 32,879 crore and generated 48,974 jobs. The Ministry said that the progress underscores the industry’s commitment to enhancing domestic manufacturing capabilities in line with the government’s Atmanirbhar Bharat initiative.