The Government of India has disbursed ₹1,350.83 crore under the Production Linked Incentive (PLI) Scheme for the automobile and auto components industry, a move aimed at strengthening domestic manufacturing and building resilient supply chains for both conventional vehicles and electric vehicles (EVs). The incentives were released up to 30 November 2025, the Ministry of Heavy Industries informed Parliament this week.
The PLI Auto Scheme, launched with a total budgetary outlay of ₹25,938 crore, is designed to promote local production of Advanced Automotive Technology (AAT) products, reduce reliance on imports, and support investment in future mobility solutions. A total of 82 applicants have been approved under the scheme, encompassing both major vehicle makers and component manufacturers.
Among the approved participants are leading original equipment manufacturers (OEMs) such as Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Kia India, Suzuki Motor Gujarat, Hero MotoCorp, Bajaj Auto, Ola Electric and Piaggio, along with component champions like Bosch, Bharat Forge, Sundram Fasteners and Motherson Sumi. These companies operate multiple manufacturing units across states including Maharashtra, Tamil Nadu, Haryana and Karnataka.
The scheme links incentives to incremental sales of advanced automotive products over a base year, with firms required to achieve at least 50 percent Domestic Value Addition (DVA) to qualify. This condition is intended to deepen localisation, bolster reliability of supply chains, and expand India’s capacity to make critical EV and auto parts domestically.
Government data indicates that the PLI programme has helped achieve eligible sales of approximately ₹32,879 crore as of 30 September 2025, against a target of ₹2,31,500 crore to be met by March 2028. The rollout of incentives and the expanding list of approved companies reflect a broader objective to integrate India’s auto sector into global value chains.
Industry analysts say the PLI scheme supports the government’s “Make in India” and EV adoption goals by attracting investment, creating jobs and nurturing supply bases for next-generation vehicles. Observers note that stronger domestic production of EV components, including batteries and advanced automotive systems, will be crucial as demand for cleaner mobility rises.
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