Auto PLI scheme on track to exceed ₹42,500 crore investment target: Govt

The production-linked incentive (PLI) scheme for the automobile sector is on track to exceed its investment target of ₹42,500 crore, with manufacturers already committing over ₹35,000 crore, a senior government official said on Wednesday, according to TNN.

Of the 82 applicants under the scheme, which include vehicle manufacturers and auto component makers, 72 have already committed investments. Eighteen companies have met the prescribed thresholds for investment and domestic value addition (DVA), a key eligibility criterion for availing incentives. Under the auto PLI scheme, incentives are linked to achieving a minimum domestic value addition of 50 per cent.

The official said the government expects another five to 10 companies to meet the qualifying criteria next year, which would further lift production volumes. For the 10 applicants who have not yet made investments, the government may consider invoking their bank guarantees.

“This year has been a success for the auto PLI scheme. In just two out of the five years since its launch, a large portion of the committed investment has already been made. From the investment perspective, the scheme has performed very well, with MSMEs emerging as the biggest beneficiaries,” the official said.

₹2,000 crore disbursed till nowThe scheme utilised 98 per cent of its allocated budget for the year, with around ₹2,000 crore disbursed out of a total outlay of ₹2,091 crore. Beneficiaries included Tata Motors, Bajaj Auto, Mahindra & Mahindra, TVS Motor, Toyota and Ola Electric.

The official added that the scheme has also led to a significant increase in localisation, particularly in the passenger vehicle segment. Four-wheelers recorded the highest domestic value addition, with around 80,000 electric cars qualifying under the scheme since 2023.

The auto PLI scheme aims to strengthen domestic manufacturing, boost localisation, and position India as a global hub for advanced automotive technologies, including electric and new-energy vehicles.