PLI Auto Scheme: Rs 1,999.94 Cr Incentives Released In FY25 For EV Manufacturing

(MENAFN- KNN India) New Delhi, Jan 1 (KNN) The government released a total of Rs 1,999.94 crore in fiscal 2024-25 to five approved applicants under the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Components sector, Ministry of Heavy Industries said in a release.

The scheme is aimed at strengthening India's manufacturing ecosystem in Advanced Automotive Technology products.

The scheme has a total budgetary outlay of Rs 25,938 crore and covers a five-year performance period from FY 2023–24 to FY 2027–28.

Incentives Linked to Electric Vehicle Production

Under the PLI Auto Scheme, incentives have been extended for the production and sale of over 13.61 lakh electric vehicles across categories. This includes 10.42 lakh electric two-wheelers, 2.38 lakh electric three-wheelers, 79,540 electric four-wheelers and 1,391 electric buses.

The scheme incentivises only those products that achieve a minimum Domestic Value Addition (DVA) of 50 per cent, in line with the government's emphasis on localisation and self-reliance in manufacturing.

Domestic Value Addition Certification

As of now, eight applicants under the Champion Original Equipment Manufacturer (OEM) category have received DVA certification for 94 vehicle variants. These include electric models from companies such as Tata Motors, Mahindra & Mahindra, Bajaj Auto, TVS Motor Company, Ola Electric, Eicher Motors, Pinnacle Mobility Solutions and Hero MotoCorp.

In the Component Champion category, 10 applicants have secured DVA certification for 37 component variants, covering key systems such as traction motors, trans-axles, engine management systems, dual clutch transmissions and EV charging components.

Investment, Sales and Employment Impact

The scheme has recorded cumulative investments of Rs 35,657 crore and cumulative determined sales of Rs 32,879 crore as of September 30, 2025. Employment generation under the scheme stands at 48,974 jobs so far.

Cumulative incentive disbursement under the PLI Auto Scheme has reached Rs 2,321.94 crore as of December 31, 2025.

Incentive Distribution Among Companies

Major beneficiaries of the scheme include Tata Motors, Bajaj Auto, Mahindra & Mahindra, TVS Motor Company and Ola Electric in the OEM category, along with Toyota Kirloskar Auto Parts in the component segment. Incentive payouts vary based on performance and eligible sales achieved during the respective years.

(KNN Bureau)

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