PLI Scheme Incentives Release Accelerates Auto Sector Growth
The Government of India has disbursed ₹1,350.83 crore under the Production Linked Incentive (PLI) Scheme for the automobile and auto components industry, according to data released by the Ministry of Heavy Industries. The scheme’s incentive payouts are designed to promote domestic production of Advanced Automotive Technology (AAT) products, strengthen localisation and support India’s transition to cleaner mobility.
The PLI Auto Scheme, which has a total outlay of ₹25,938 crore, is structured to catalyse investment and scale manufacturing of vehicles and components critical to future mobility, including electric vehicles (EVs). A total of 82 applicants have been approved under the scheme so far, spanning Champion OEMs and Component Champion categories, demonstrating wide industry uptake.
Sales Milestones and Manufacturing Hubs Emerge
Under the PLI scheme, eligible sales have reached ₹32,879 crore as of 30 September 2025, moving steadily toward the target of ₹2,31,500 crore to be achieved by March 2028. This growth highlights early commercial momentum within sectors incentivised under the programme.
State distribution data shows that Maharashtra, Tamil Nadu, Haryana and Karnataka are leading manufacturing hubs for approved units, reinforcing regional clusters of automotive and EV component production. These states are poised to benefit from deeper ecosystem development and investment attraction under the PLI framework.
Supporting EV Localisation and Advanced Technologies
The scheme’s incentives are linked to incremental sales of advanced automotive products, helping domestic companies scale up production and move up the value chain. As EV adoption accelerates nationwide, the PLI Auto Scheme is contributing to localisation of key EV components and strengthening upstream supply chains.
By tying financial incentives to manufacturing growth and advanced tech production, the government is positioning India to capture a larger share of global automotive value creation. Early disbursements encourage participant companies to invest further in capacity expansion and technology upgrades to meet future targets.
