PLI Scheme for Automobile and Auto Component Industry: Status and Progress So Far

The Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry—commonly known as the PLI-Auto Scheme—was introduced by the Indian government to encourage domestic manufacturing, innovation, and self-reliance in the automotive sector.

With a significant outlay of ₹25,938 crore, this scheme is aimed at enhancing India’s competitiveness in the global automotive landscape, especially in emerging segments such as electric vehicles (EVs) and advanced automotive technologies.

The Production Linked Incentive (PLI) Scheme for the Automobile and Auto Components Industry, with a budgetary outlay of ₹25,938 crore, aims to enhance India’s manufacturing capabilities for Advanced Automotive Technology (AAT) products.

The scheme has approved applications from several companies, categorized under “Champion OEM Incentive Scheme” and “Component Champion Incentive Scheme.”

Champion OEM Incentive Scheme

Companies have been approved under this category, including – Ashok Leyland Limited, Tata Motors, Hero MotoCorp Ltd etc.

Component Champion Incentive Scheme

The following applicant has been approved under this category: Bosch Limited.

Objective of the Scheme

The PLI-Auto Scheme is primarily designed to incentivise manufacturers for achieving incremental sales of products that utilise advanced automotive technology. The incentive is calculated based on a determined sales value, which refers to the incremental eligible sales of a particular year compared to the base year—defined as FY 2019–20.

There is no fixed target for incremental sales as of February 2025, which offers companies flexibility while still rewarding performance improvements.

Incentive Disbursement Update (FY 2024–25)

As per the latest update shared by the Minister of State for Steel and Heavy Industries, Shri Bhupathiraju Srinivasa Varma, the government has received incentive claims worth ₹322.12 crore from 4 applicants during FY 2024–25. Of these, ₹246.21 crore has already been disbursed to 2 applicants as of February 28, 2025.

This reflects a gradual but tangible uptake of the scheme by eligible manufacturers.

Electric Vehicle Sales Under the Scheme

One of the key areas of focus under the PLI-Auto Scheme has been the promotion of electric vehicles. As of December 31, 2024, the cumulative determined sales of electric vehicles under the scheme stood at a noteworthy ₹14,657 crore. This indicates both rising consumer acceptance and production traction in the EV segment, supported by policy-level interventions such as the PLI-Auto Scheme.

Conclusion

While disbursements and participation are still at a relatively early stage, the data points towards growing engagement by automotive players. As more companies ramp up production and meet the criteria for incremental sales, it is likely that incentive disbursements will increase in the coming financial years.

The PLI-Auto Scheme is expected to play a pivotal role in shaping the future of India’s automotive sector, particularly by promoting cleaner mobility solutions and advanced component manufacturing.

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