India’s PLI Auto Scheme Sees Growth: 82 Companies Approved, ₹1,350 Crore Incentives Released

The Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry has made progress, with 82 companies now approved and ₹1,350.83 crore in incentives disbursed as of 30 November 2025.

Eligible sales under the scheme reached ₹32,879 crore by 30 September 2025, against a target of ₹2.31 lakh crore by FY 2027-28.

Approved by the Union Cabinet on 15 September 2021, the scheme has a total outlay of ₹25,938 crore. It supports domestic production of Advanced Automotive Technology (AAT) products, aims to cut import reliance, and generate employment.

The initiative covers 19 AAT vehicle categories and 103 component categories, with emphasis on battery electric vehicles, hydrogen fuel cell vehicles, and related systems across two-wheelers, three-wheelers, passenger cars, commercial vehicles, tractors, and defence applications.

The 82 approved entities include Champion OEMs like Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Kia India, Suzuki Motor Gujarat, Ashok Leyland, Hero MotoCorp, Bajaj Auto, Ola Electric, and Piaggio. Component Champions comprise Bosch, Bharat Forge, Ceat, Sundram Fasteners, Schaeffler India, Motherson Sumi, UNO Minda, Varroc Engineering, and Wabco India.

These companies run 278 manufacturing units nationwide, concentrated in Maharashtra (85 units), Tamil Nadu (49), Haryana (43), and Karnataka (29). To claim incentives, firms must meet a 50% Domestic Value Addition (DVA) threshold.

As of March 2025, six OEMs secured DVA certification for 66 vehicle variants, while seven component makers qualified for 22 variants. DVA assessments follow a uniform Standard Operating Procedure by accredited agencies.

The Ministry of Heavy Industries noted that the programme is fostering investments, supply chain depth, and production capacity in states with established automotive clusters. It aligns with its efforts to position India as a global hub for advanced mobility technologies.

Also read: 2026 Kia Seltos vs Tata Sierra: How They Compare