PLI Auto scheme going strong | ₹35,657 crore invested, ₹2,321.94 crore incentives disbursed so far

The Production Linked Incentive scheme for the automobile sector (PLI Auto) has achieved key milestones in boosting India’s manufacturing capabilities in advanced automotive technology (AAT) products, with cumulative investment of ₹35,657 crore and incentives worth ₹2,321.94 crore disbursed as of December 31, 2025.

The PLI Auto scheme, with a total budgetary outlay of ₹25,938 crore, covers a five-year performance period from FY2023–24 to FY2027–28.

In FY2024–25, incentives of ₹322 crore were disbursed

to four approved applicants. For the performance year FY2024–25, a total of ₹1,999.94 crore has so far been disbursed to five approved applicants. Tata Motors, Bajaj Auto, Mahindra & Mahindra, TVS Motor Company and Ola Electric Technologies were among the original equipment manufacturers (OEMs) receiving incentives, while Toyota Kirloskar Auto Parts was the component manufacturer covered.

Under the scheme, incentives have been provided for a total of 13,61,488 electric vehicles across categories. This includes 10,42,172 electric two-wheelers, 2,38,385 electric three-wheelers, 79,540 electric four-wheelers and 1,391 electric buses, based on sales during FY2023–24 and FY2024–25.

The PLI Auto scheme incentivises only those products that achieve a minimum domestic value addition (DVA) of 50%. As of now, eight applicants under the Champion OEM category have received DVA certification for 94 vehicle variants. These include models from Mahindra & Mahindra, Tata Motors, Bajaj Auto, TVS Motor Company, Ola Electric Technologies, Eicher Motors, Pinnacle Mobility Solutions and Hero Motocorp.

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In the Component Champion category, 10 applicants have received DVA certification for 37 variants. Certified components include trans-axles, traction motors, hub motor-integrated wheel rims, engine management systems, dual clutch transmissions, angle encoders, on-board chargers and urea dosing modules for BS VI applications.

As per the scheme performance data up to September 30, 2025, cumulative determined sales of ₹32,879 crore have been achieved against the base year FY2019–20. The scheme has also generated employment for 48,974 people so far. While the Cabinet projection for five years envisages investment of ₹42,500 crore and employment of 1,48,147, current performance indicates steady progress towards these targets.

The government said the PLI Auto scheme reflects a strong commitment by participating companies towards achieving the vision of Atmanirbhar Bharat by strengthening domestic manufacturing, enhancing value addition and accelerating the adoption of advanced automotive technologies in India.