The Government of India has shared an update on the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Components Industry, showing steady progress in participation, localisation and incentive payouts.
What the scheme was created to achieve
The PLI Auto scheme was approved by the Union Cabinet on 15 September 2021 with a total budget outlay of ₹25,938 crore. The scheme is designed to support domestic manufacturing of Advanced Automotive Technology (AAT) products, reduce import dependence and create jobs.
Where the scheme stands today
Check similar Cars
• 82 companies approved under the scheme as of 30 November 2025, covering both vehicle manufacturers (Champion OEMs) and auto component makers (Component Champions).
• These firms operate 278 approved manufacturing units across the country.
• The largest manufacturing hubs are Maharashtra (85 units), followed by Tamil Nadu (49), Haryana (43), and Karnataka (29).
(Also Read: 2026 Kia Seltos Live Launch Updates - Price, Variants, New Features: Launch Event Starts Now In Hyderabad)
How much money has gone out
• Total scheme outlay: ₹25,938 crore
{{/usCountry}}• Total scheme outlay: ₹25,938 crore
{{/usCountry}}• Incentives disbursed so far: ₹1,350.83 crore
• Beneficiary companies receiving incentives: 5
• Target eligible sales value by FY2027-28: ₹2.31 lakh crore (over FY2019-20 baseline)
• Sales achieved till 30 September 2025: ₹32,879 crore
The localisation rule shaping manufacturing plans
To qualify for incentives, companies must achieve at least 50 percent Domestic Value Addition. This requirement aims to strengthen India’s local supply chain and reduce reliance on imports.
As of March 2025:
• OEM category:
– 6 companies received DVA certification
– 66 approved vehicle variants covered
• Component category:
– 7 companies received DVA certification
– 22 approved component variants covered
The DVA calculation process follows a Standard Operating Procedure jointly framed by approved testing agencies to ensure uniform audits and transparency.
What products are covered under the scheme
• 19 AAT vehicle categories
• 103 AAT component categories
Key focus areas include:
• Battery electric vehicles and hydrogen fuel cell vehicles across two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, tractors and defence vehicles
• Advanced EV systems and locally manufactured components
(Also Read: Tata leads passenger EV sales in November 2025: See where other brands stood)
Who the big players are: Major approved companies
Vehicle makers include Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Kia India, Suzuki Motor Gujarat, Ashok Leyland, Hero MotoCorp, Bajaj Auto, Ola Electric and Piaggio.
Component manufacturers on the list include Bosch, Bharat Forge, Ceat, Sundram Fasteners, Schaeffler India, Motherson Sumi, UNO Minda, Varroc Engineering and Wabco India.
What the government says the impact looks like
The government says EV adoption is increasing under the scheme, and localisation of the EV value chain is expanding across AAT product categories as more companies qualify for incentives.