The PLI-Auto scheme has been subdivided into the champion original equipment manufacturer incentive scheme and component champion incentive scheme.
| Photo Credit:
Udit Kulshrestha
The Centre has spent ₹29,576 crore until March 2025 and created over 44,987 job opportunities across the automotive value chain through the Production Linked Incentive (PLI) scheme on auto. The details came out while reviewing the PLI scheme in a review meeting conducted by the Ministry of Heavy Industries (MHI).
The amount spent is 70 per cent of the total investment outlay of ₹42,500 crore projected for five years of the scheme. In terms of incentives, the MHI has disbursed ₹322 crore till March 31, from the projection of ₹336 crore. The Budget estimate for FY26 was cut to ₹336 crore from ₹3,150 crore last year.
Companies like Tata Motors, Mahindra & Mahindra (M&M), Ola Electric, Toyota Kirloskar Motor, Bajaj Auto, TVS Motor Company, Delphi-TVS Technologies, Bosch Automotive Electronics India, Sona BLW Precision Forgings and Uno Minda are some of the major names who have got approvals for incentives for their products, under the PLI scheme.
“Chaired a review meeting with senior officials of the Ministry of Heavy Industries on the PLI-Auto Scheme… Going forward, we are committed to regular industry workshops, faster claim disbursals, and robust support to stakeholders paving the road for a self-reliant and globally competitive auto sector,” HD Kumaraswamy, Minister Of Heavy Industries and Steel, said in post on X.
The scheme was launched in September 2021 with budgetary outlay of ₹25,938 crore for a period of five years (FY22-23 to FY26-27), to boost manufacturing of advanced automotive technology (AAT) products. The scheme helps to facilitate and promote deep localisation for AAT products and enable creation of domestic as well as global supply chain.
It is focused on zero emission vehicles (ZEVs) — battery electric vehicles (BEVs) and hydrogen fuel cell vehicles. The incentive under the scheme is applicable from FY22-23 to FY26-27 (five years) and the disbursement is applicable in the subsequent financial year from FY23-24 to FY27-28.
The PLI-Auto scheme has been subdivided into the champion original equipment manufacturer (OEM) incentive scheme and component champion incentive scheme.
Published on July 10, 2025