PLI Auto Scheme Creates Jobs, Rs 29.6B Spent So Far

18 Jul 2025 CW Team

The central government has spent Rs 29.6 billion (approx. USD 355 million) under the Production Linked Incentive (PLI) scheme for the automotive sector as of March 2025, generating over 44,987 job opportunities across the auto value chain, according to the Ministry of Heavy Industries (MHI).

This spending accounts for 70 per cent of the Rs 42.5 billion (approx. USD 510 million) total investment outlay projected for the five-year scheme. Of this, Rs 322 million in incentives has been disbursed till 31 March, against a projection of Rs 336 million. The budget estimate for FY26 was sharply cut from Rs 3.15 billion to Rs 336 million.

Approved beneficiaries of the scheme include Tata Motors, Mahindra & Mahindra, Ola Electric, Toyota Kirloskar Motor, Bajaj Auto, TVS Motor Company, Bosch Automotive Electronics India, Delphi-TVS Technologies, Sona BLW Precision Forgings, and Uno Minda.

H.D. Kumaraswamy, Minister for Heavy Industries and Steel, who chaired the review, affirmed the government’s commitment to conducting industry workshops, accelerating claim disbursals, and supporting stakeholders to build a globally competitive and self-reliant automotive sector.

The scheme, launched in September 2021 with a budget outlay of Rs 25.9 billion over five years (FY22–23 to FY26–27), promotes domestic manufacturing of advanced automotive technology (AAT) products and deep localisation.

It particularly focuses on zero-emission vehicles (ZEVs) such as battery electric vehicles (BEVs) and hydrogen fuel cell vehicles. The incentives apply from FY22–23 to FY26–27, with disbursals occurring from FY23–24 to FY27–28.

The scheme is split into two tracks: the Champion OEM Incentive Scheme and the Component Champion Incentive Scheme, targeting a broad base of players in India’s automotive manufacturing ecosystem.

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