The Production Linked Incentive (PLI) Scheme for Automobile and Auto Components, launched with a budgetary outlay of ₹25,938 crore, is driving a significant transformation in India’s automotive industry, according to a press release by the Ministry of Heavy Industries on March 27, 2025.
As of December 2024, the scheme has led to:
- ₹25,219 crore in capital investment, with major contributions from OEMs like Tata Motors and Mahindra & Mahindra, especially in the electric vehicle (EV) segment.
- 38,186 jobs generated across manufacturing, R&D, and supply chain operations.
- ₹15,230 crore in incremental sales over the base year (FY20).
- ₹322 crore in incentives disbursed during FY25, marking the first performance-based payout for FY24.
Under the scheme, 6 OEMs have received Domestic Value Addition (DVA) certification for 66 variants, while 7 component manufacturers have been certified for 22 variants. This certification ensures a 50% minimum local value addition, aligning with the government’s Make in India vision and boosting the domestic supply chain.
The PLI-Auto Scheme has clearly positioned itself as a catalyst for self-reliance and global competitiveness in the Indian auto sector.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Policy changes and economic outcomes are subject to revision. Always consult official sources for the latest updates.
