Auto PLI Investments Cross ₹45,000 Crore in India

Investments under India’s Production Linked Incentive (PLI) scheme for automobiles and automotive components have crossed ₹45,000 crore, Union Heavy Industries Minister H D Kumaraswamy stated on Thursday.

The announcement highlights growing investment interest in India’s automotive manufacturing ecosystem, particularly in advanced automotive technologies, electric vehicles and locally produced auto components. The automobile PLI scheme aims to boost domestic manufacturing, increase
localisation and encourage the development of new vehicle technologies in India.

Auto PLI Investments Cross ₹45,000 Crore

During an interaction with electric vehicle beneficiaries and distributors, Kumaraswamy said investments under the automobile PLI scheme had reached more than ₹45,000 crore.

According to the minister, the scheme has attracted several original equipment manufacturers (OEMs), which are now manufacturing electric vehicles under the programme. He added that government support is focused not only on creating demand and developing charging stations but also on building domestic manufacturing capacity.

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The automobile PLI scheme was approved in September 2021 with a budgetary outlay of ₹25,938 crore. It aims to encourage the production of Advanced Automotive Technology products, including electric vehicles and
advanced automotive components.

Government’s Automobile PLI Scheme Explained

The Production Linked Incentive scheme for automobiles and auto components is designed to encourage manufacturers to invest in advanced vehicle
technologies and establish a stronger automotive value chain in India.

The scheme covers Advanced Automotive Products (AAP), including electric vehicles and components for next-generation vehicles. Eligible products must also meet a minimum domestic value addition requirement of 50% to qualify for incentives.

As per government data, approved applicants had reported investments of ₹44,326 crore as of March 31, 2026. The latest figure announced by Kumaraswamy indicates that total investments have now crossed the ₹45,000 crore mark.

Automobile PLI Scheme: Key Details

EV Manufacturing Gets Policy Support

Electric vehicle manufacturing is one of the key focus areas of the automobile PLI scheme. Several OEMs are implementing projects under the programme and manufacturing EVs in India.

The scheme is intended to encourage investment in technologies that can increase India’s reliance on locally produced components and strengthen its position in the global automotive value chain.

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Government support also includes measures related to charging infrastructure and demand creation. Together, these initiatives are expected to help manufacturers increase vehicle production and improve the availability of
advanced vehicles in the Indian market.

Kumaraswamy Highlights Export Opportunities

Kumaraswamy also highlighted India’s potential to develop cost-effective and scalable automotive solutions for export to other emerging markets.

The minister stated that products developed in India could find demand in international markets if manufacturers focus on affordability, technology and scalability. This could help Indian automotive companies expand their global presence.

These comments come at a time when automakers worldwide are exploring new manufacturing locations and supply-chain partnerships. India’s growing vehicle market and expanding engineering capabilities could support a more export-oriented automotive manufacturing strategy.

Electric Buses and Trucks May Offer Lower Running Costs

The minister also pointed to the increasing adoption of electric buses and electric trucks in the commercial transportation sector. According to him, these vehicles are proving to be more cost-effective for some fleet operators.

Electric commercial vehicles can offer lower running costs because electric powertrains generally require less routine maintenance and do not depend on petrol or diesel. However, their operating economics depend on factors such
as the vehicle’s purchase price, battery capacity, charging availability, electricity costs and usage patterns.

PLI Scheme May Strengthen India’s Auto Manufacturing Base

Rising investment under the automobile PLI scheme indicates increasing interest in advanced vehicle and component manufacturing in India. The programme is expected to support new production facilities, technology
development and job creation across the automotive value chain.

According to official government data, the scheme had created 67,820 jobs as of March 31, 2026. It had also generated incremental revenue of ₹52,414 crore over the base year of FY2019-20.

What the ₹45,000 Crore Auto PLI Milestone Means

Crossing the ₹45,000 crore investment mark is a significant development for India’s automobile manufacturing policy. The figure reflects capital investment in advanced automotive technologies, electric vehicle production
and auto components.

However, investment announcements and approved commitments do not always translate into immediate production or sales. The long-term impact will
depend on the speed of project execution and the competitiveness of the products developed by participating manufacturers.

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