India's automobile manufacturing boost: Govt disburses Rs 1,999.94 Cr Incentives under PLI

Under the Production-Linked-Incentive Scheme, the government, in FY25, has rolled out a total incentive of Rs 1,999.94 for the Automobile and Auto Components segment, as per the Ministry of Heavy Industries’ statement.

The program aims to improve India's advanced automotive technology production ecosystem. The program spans a five-year performance period from FY 2023–2024 to FY 2027–2028 and has a total budgeted cost of ₹25,938 crore.

PLI benefits on Electric Vehicle Production

The scheme also benefited the production and sale of more than 13.61 lakh electric vehicles in all categories. This comprises 1,391 electric buses, 79,540 electric four-wheelers, 2.38 lakh electric three-wheelers, and 10.42 lakh electric two-wheelers.

To promote localisation in manufacturing and self-reliance, the PLI scheme applies only to those products that have a minimum Domestic Value Addition (DVA) of 50 per cent.

Domestic Value Addition Certification

As of now, eight manufacturers under the Champion Original Equipment Manufacturer (OEM) category have secured DVA certification for a total of 94 vehicle variants. The certified models include electric vehicles from Tata Motors, Mahindra & Mahindra, Bajaj Auto, TVS Motor Company, Ola Electric, Eicher Motors, Pinnacle Mobility Solutions, and Hero MotoCorp.

Ten applicants in the Component Champion category have obtained DVA certification for 37 component versions, including important systems like dual clutch transmissions, traction motors, trans-axles, engine management systems, and EV charging components.

Overall Impact

As of September 30, 2025, the scheme had reported total determined sales of Rs 32,879 crore and cumulative investments of Rs 35,657 crore. As per reports, there are currently 48,974 jobs created under the program.

Meanwhile, by December 31, 2025, the cumulative incentive disbursement reached Rs 2,321.94 crore

Under the scheme, companies like  Bajaj Auto,  Ola Electric, Mahindra & Mahindra, Tata Motors, TVS Motor Company, and Toyota Kirloskar Auto Parts are included as major beneficiaries.