PLI-Auto Initiative: Companies Invest ₹25,219 Crore, Generate 38,186 Jobs
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Synopsis
The PLI-Auto initiative has secured commitments exceeding ₹25,219 crore in capital investments, leading to the creation of 38,186 jobs. Major companies like Tata Motors and Mahindra & Mahindra are enhancing their EV production capabilities, reflecting growth in India's automotive sector.
Key Takeaways
- Investment of ₹25,219 crore pledged by firms.
- Creation of 38,186 jobs through the initiative.
- Significant growth in EV sales and production.
- Incentives disbursed total ₹322 crore.
- Focus on domestic manufacturing and technological upgrades.
New Delhi, March 27 (NationPress) Firms participating in the PLI-Auto initiative have pledged more than ₹25,219 crore in capital investments (up to December 2024), encompassing the establishment of new production sites and technological advancements while creating 38,186 jobs, as reported by the government on Thursday.
For example, Tata Motors and Mahindra & Mahindra have announced substantial investments aimed at enhancing EV production capacity, according to a statement from the Ministry of Heavy Industries.
The incremental sales generated through the PLI-Auto initiative reached ₹15,230 crore by December 2024, with incentive distributions amounting to ₹322 crore.
“The fiscal year 2023-24 marked the first performance year of the initiative, with disbursements occurring in FY 2024-25. To date, a total of ₹322 crore in incentives has been allocated under the scheme,” the ministry stated.
Sales in sectors such as electric vehicles (EVs) and essential components have experienced notable growth. The launch of new models in the EV segment has been pivotal in driving this sales increase.
“The initiative has successfully generated thousands of direct and indirect employment opportunities across manufacturing, supply chain management, and R&D. Significantly, new EV production facilities have fostered localized job creation in manufacturing hubs,” the ministry highlighted.
The PLI-Auto initiative is crucial in transforming India’s automotive manufacturing landscape, diminishing reliance on imports, and incorporating the domestic industry into the global supply chain.
The Union Cabinet ratified the PLI Scheme for Automobiles and Auto Components on September 15, 2021, with a financial outlay of ₹25,938 crore.
The PLI-Auto initiative aims to address the cost disadvantages faced by the industry in manufacturing while promoting domestic production of Advanced Automotive Technology (AAT) products in India.
The PLI Auto initiative has shown adaptability to the evolving requirements of the industry. The ministry has identified 19 categories of AAT vehicles and 103 AAT components included in the initiative after extensive consultations with stakeholders.
To support the ‘Make in India’ campaign and enhance local manufacturing of advanced automotive products, applicants of the initiative must achieve a domestic value addition (DVA) of 50 percent to qualify for incentives.
