What is the impact of the Auto PLI scheme with Rs 35,657 crore investment?
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Synopsis
The PLI Auto scheme has made significant strides in enhancing India's automotive manufacturing ecosystem, with substantial investments and job creation. Discover how this initiative is shaping the future of advanced automotive technology and promoting electric vehicles in the country.
Key Takeaways
- Investment of Rs 35,657 crore under the PLI Auto scheme.
- Creation of 48,974 jobs attributed to the scheme.
- Sales of Rs 32,879 crore recorded till September 30.
- The scheme has a budgetary allocation of Rs 25,938 crore.
- Incentives focus on achieving Domestic Value Addition of at least 50%.
New Delhi, Dec 31 (NationPress) The government announced on Wednesday that the Production Linked Incentive – Auto Scheme (PLI Auto) has achieved a total investment of Rs 35,657 crore along with cumulative sales reaching Rs 32,879 crore as of September 30.
Additionally, the scheme has led to the creation of 48,974 jobs, with a total incentive of Rs 2,321.94 crore being disbursed up to December 31.
The PLI Auto scheme aims to bolster the nation’s manufacturing capabilities in Advanced Automotive Technology (AAT) products.
With a budgetary allocation of Rs 25,938 crore, the initiative spans a performance timeframe of five years, from FY 2023–24 to FY 2027–28.
During the first performance year, FY 2023–24, Rs 322 crore was distributed to four approved applicants in FY 2024–25.
According to a statement from the Ministry of Heavy Industries, for the performance year 2024–25, Rs 1,999.94 crore has been allocated to five approved applicants.
The scheme incentivizes a total of 10,42,172 units of electric two-wheelers (e-2W), 2,38,385 units of electric three-wheelers (e-3W), 79,540 units of electric four-wheelers (e-4W), and 1,391 electric buses (e-buses).
Only products achieving a Domestic Value Addition (DVA) of at least 50 percent are eligible for incentives.
To date, eight applicants in the Champion OEM category have obtained DVA certification for 94 variants, while ten applicants in the Component Champion category have received DVA certification for 37 variants.
In a related development, the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme was announced on September 29, with an outlay of Rs 10,900 crore.
The Ministry noted that the aggressive targets set for the e-3Ws (L5) segment have been surpassed ahead of schedule, achieving 2.88 lakh units, and the incentivization for e-3Ws (L5) will conclude post December 26, 2025.
Currently, EV penetration in the e-3Ws (L5) segment is estimated at 32 percent, aligning with the government's vision of creating a self-sustaining ecosystem.
As of December 30, a total of 21.24 lakh EVs have been sold under the PM E-DRIVE Scheme, according to the ministry.
Point of View
The PLI Auto scheme represents a significant step forward in India's commitment to enhancing its manufacturing capabilities. This initiative not only addresses the growing demand for electric vehicles but also emphasizes the importance of domestic value addition, ensuring that the country remains competitive on a global scale.
NationPress
01/01/2026
Frequently Asked Questions
What is the total investment under the PLI Auto scheme?
The total investment under the PLI Auto scheme amounts to Rs 35,657 crore.
How many jobs have been created by the PLI Auto scheme?
The scheme has generated 48,974 jobs.
What is the budgetary outlay for the PLI Auto scheme?
The PLI Auto scheme has a total budgetary outlay of Rs 25,938 crore.
What products are incentivized under the PLI Auto scheme?
The scheme incentivizes electric two-wheelers, three-wheelers, four-wheelers, and electric buses.
What is the EV penetration in the e-3Ws segment?
The EV penetration within the e-3Ws (L5) segment is estimated at 32 percent.
