The Government of India is set to roll out the first batch of incentives under the Production Linked Incentive (PLI) scheme for the auto sector by the fourth quarter of FY25, according to industry reports.
The PLI scheme, aimed at boosting domestic manufacturing and reducing imports, primarily targets the production of electric vehicles (EVs), advanced automotive components, and hydrogen fuel cell technology. Officials confirm that the scheme has received significant interest, with over 75 proposals submitted by automakers and component manufacturers.
Of the ₹25,938 crore allocated for the scheme, a substantial portion is expected to be disbursed in the upcoming financial year as participating companies begin meeting the stipulated production and sales thresholds.
Government representatives emphasize that the initiative will play a pivotal role in driving innovation, enhancing manufacturing capabilities, and achieving sustainability goals in the auto sector. Industry players have welcomed the move, expressing optimism about its potential to position India as a global hub for green and advanced automotive technologies.
This development aligns with the government’s broader vision of achieving net-zero carbon emissions by 2070 and fostering a self-reliant automotive industry.
Further details on the incentive distribution and monitoring mechanisms are anticipated to be released in the coming months.
