Auto PLI Scheme Delivers Rs 35,657 Crore Investment, 48,974 Jobs; EV Output Surges With 13.6 Lakh Units Incentivised
The central government has disbursed nearly Rs 2,321.94 crore in incentives to leading automakers — Tata Motors, Bajaj Auto, Mahindra & Mahindra, TVS Motor, and Ola Electric, for FY26 against their performance in FY25.
Several other auto component manufacturers, including Delphi-TVS, Bosch Automotive, Sona BLW, and Tata Autocomp, are next in line to receive state-backed incentives later this year.
Under the PLI-Auto scheme, FY24 marked the first performance year, where Rs 322 crore had been disbursed to four approved applicants in FY25.
Approved by the Centre in September 2021, the Production-Linked Incentive (PLI) scheme for Automobiles seeks to reward incremental production, domestic value addition and investment, beginning FY24 onward.
Total investments committed so far under the scheme amount to Rs 35,657 crore as of September, compared with a projected Rs 42,500 crore over five years.
Bulk investment has been made and now sales will pick up, indicating the scheme has shifted from capital deployment to revenue generation and scale-up.
The government is also expected to invoke bank guarantees from 10 companies that have failed to make any investment under the scheme.
While 82 firms, both vehicle manufacturers and component makers are eligible to claim benefits, the ministry has not disclosed the names of non-compliant entities.
Separately, under the PM Electric Drive Revolution in Innovation Vehicle Enhancement (PM E-DRIVE) scheme, the ministry announced that 2.124 million electric vehicles have been sold to date.
EV penetration in the L-5 (three-wheeler) segment has reached an estimated 32 per cent, marking one of India’s fastest-growing clean mobility categories.
Please click here to add Swarajya as your preferred and trusted news source on Google
