Rs 25,219 Crore Investment And 38,186 Jobs Generated Under PLI Scheme For Automobile And Auto Components: Government

The Production Linked Incentive (PLI) Scheme for Automobile and Auto Components has attracted Rs 25,219 crore in investment and created 38,186 jobs as of December 2024, the Ministry of Heavy Industries said on Thursday (27 March).

The ministry further said that incremental sales of Rs 15,230 crore were reported over the base year of FY 2019–20.

The scheme was approved by the Union Cabinet on 15 September 2021 with a budgetary outlay of Rs 25,938 crore. It aims to address cost disabilities in manufacturing and encourage domestic production of Advanced Automotive Technology (AAT) products.

On 9 November 2021, following stakeholder consultations, the ministry notified 19 AAT vehicle categories and 103 AAT component categories to be covered under the scheme.

Applicants are required to achieve a Domestic Value Addition (DVA) of 50 per cent to be eligible for incentives. As of now, six OEMs have received DVA certification for 66 approved variants. Seven component manufacturers have received certification for 22 variants.

To standardise DVA calculations, testing agencies have adopted a unified Standard Operating Procedure (SOP).

According to the ministry, over Rs 25,000 crore in capital investment has been committed by companies under the scheme, including for new production facilities and technology upgrades.

Tata Motors and Mahindra & Mahindra are among the firms that have announced significant investments in EV production capacity.

According to the ministry, the scheme has also led to direct and indirect job creation in manufacturing, supply chain management, and R&D, especially around new EV production plants.

FY 2023–24 marked the first performance year for which disbursement was carried out in FY 2024–25. An aggregate incentive of Rs 322 crore has been disbursed under the scheme so far.

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