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Government’s PLI Auto Scheme Shows Progress in Automotive Sector

Indian Community Editorial TeamBy Indian Community Editorial TeamDecember 31, 20252 Mins ReadNo Comments Add us to Google Preferred Sources
Government’s PLI Auto Scheme Shows Progress in Automotive Sector
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The government announced that the Production Linked Incentive – Auto Scheme (PLI Auto) has attracted a cumulative investment of Rs 35,657 crore and achieved cumulative determined sales of Rs 32,879 crore by September 30. This initiative has also generated 48,974 jobs and disbursed a cumulative incentive of Rs 2,321.94 crore as of December 31.

The PLI Auto scheme aims to boost the country’s manufacturing capabilities in Advanced Automotive Technology (AAT) products. With a total budgetary outlay of Rs 25,938 crore, the scheme spans a performance period of five years, from FY 2023–24 to FY 2027–28.

In the first performance year, FY 2023–24, Rs 322 crore was disbursed to four approved applicants. The Ministry of Heavy Industries stated that for the performance year 2024–25, a total of Rs 1,999.94 crore has been disbursed to five approved applicants.

Under the scheme, incentives are provided for various electric vehicles, including 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). The scheme incentivizes products achieving a Domestic Value Addition (DVA) of at least 50 percent.

Applicants under the Champion OEM category have received Domestic Value Addition (DVA) certification for 94 variants, while those under the Component Champion category have received DVA certification for 37 variants. Additionally, the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, with an outlay of Rs 10,900 crore, was notified on September 29.

The ministry highlighted that the targets for the e-3Ws (L5) segment have been surpassed ahead of schedule, with 2.88 lakh units sold. The scheme for e-3Ws (L5) incentivization has been closed post 26/12/2025, achieving an estimated 32 percent EV penetration within this segment. Under the PM E-DRIVE Scheme, a total of 21.24 lakh EVs have been sold as of December 30.

Advanced Automotive Technology Champion OEM Component Champion Domestic Value Addition Electric Vehicles Ministry of Heavy Industries PM E-DRIVE Scheme. PM Electric Drive Revolution Production Linked Incentive – Auto Scheme
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Indian Community Editorial Team

The Indian Community Editorial Team curates, verifies, and publishes stories that matter to Indians worldwide. From culture and community to business and innovation, our mission is to spotlight voices, ideas, and events that bring our global community closer together. Have news or a story to share? Submit it to us at [email protected].

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