PLI Scheme Drives ?67,690 Crore in Auto Sector Investments, Boosts EV Growth

26 Aug 2025

India’s automobile and auto component industry has become one of the foremost beneficiaries of the government’s Production Linked Incentive (PLI) scheme, securing committed investments totalling ?67,690 crore, according to the Ministry of Commerce and Industry.

As of March 2024, investments totalling ?14,043 crore have already been realised under the scheme, resulting in the creation of over 28,800 jobs, according to the report. The Production Linked Incentive (PLI) scheme for automobiles and auto components, approved in September 2021 with an allocation of ?25,938 crore, is designed to promote advanced automotive technologies, clean mobility solutions, and increased localisation within the sector.

Officials stated that the scheme is strategically aligned with the Faster Adoption and Manufacturing of Electric Vehicles (FAME) initiative and aims to establish India as a global hub for electric vehicles (EVs) and clean-tech auto components. The focus encompasses EV batteries, hydrogen fuel cells, flex-fuel engines, and other green technologies, while also reinforcing the country’s traditional automotive sector.

Overall, the PLI framework has driven investments exceeding ?1.76 lakh crore across 14 sectors, with the auto industry emerging as a pivotal force for India’s industrial growth and export ambitions. With the automobile sector’s turnover estimated at approximately ?22 lakh crore, the government envisions it as a key catalyst for enhancing employment, expanding exports, and fostering technological innovation.

Industry experts observed that with rising domestic demand and expanding export opportunities for India’s EVs and components, the PLI scheme has the potential to fast-track the shift toward sustainable mobility, while positioning India to remain globally competitive in the next generation of automotive technology.