Automobile PLI Scheme Investments Cross Rs 45,000 Crore: Report

Investments under India’s Production Linked Incentive (PLI) Scheme for the automobile sector have crossed ₹45,000 crore, Union Heavy Industries Minister H D Kumaraswamy said, highlighting the Centre's focus on strengthening local automotive manufacturing alongside electric vehicle (EV) adoption.

The PLI-Auto scheme was approved with an outlay of ₹25,938 crore to encourage manufacturing of Advanced Automotive Technology products, including EVs. According to official data, approved applicants had reported cumulative investment of ₹44,326 crore as of March 31, 2026.

Speaking during an interaction with EV beneficiaries and distributors, Kumaraswamy was quoted as saying that the government’s policy support for electric mobility covers more than creating demand and expanding charging infrastructure. 

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Local manufacturing and development of an automotive technology ecosystem are also key elements of the policy.

“Investments under the scheme have now exceeded ₹45,000 crore, with several original equipment manufacturers manufacturing electric vehicles under the programme,” Kumaraswamy was quoted as saying.

The minister said India could also use the capabilities being developed through the transition to electric mobility to serve markets outside the country.

The focus on localisation is key for the automotive industry as manufacturers expand domestic production of advanced automotive technologies and components. The PLI-Auto scheme requires eligible products to meet a minimum 50 per cent domestic value addition to qualify for incentives.

Kumaraswamy also pointed to the growing application of electric powertrains in commercial transport.

The minister added that electric buses and trucks can support cleaner transportation while reducing India’s dependence on imported crude oil. The government is supporting electric commercial mobility through programmes including PM E-DRIVE, which covers categories such as e-trucks and e-buses alongside other electric vehicles and charging infrastructure. (Press Information Bureau)

For manufacturers, the policy push combines demand-side measures with incentives aimed at building domestic production capabilities. The PLI-Auto scheme has attracted reported investment of ₹44,326 crore and generated 67,820 jobs as of March 31, 2026, according to official data.