The Production Linked Incentive for the automobile and auto component sector, known as the PLI-Auto Scheme, has provided incentives to more than 13.61 lakh electric vehicles so far. The scheme was approved in 2021 to strengthen domestic manufacturing in advanced automotive technologies, reduce cost disadvantages, and build a resilient supply chain. It also aims to raise domestic value addition in the sector.
Incentive Coverage
The scheme offers incentives of 13% to 18% for electric vehicle and hydrogen fuel cell components. For other advanced automotive technology components, the incentive range is 8% to 13%. The support is linked to eligible sales and manufacturing performance.
Vehicles Benefiting from the Scheme
The incentives have been extended across several categories of electric vehicles:
- Over 10 lakh electric two-wheelers.
- Over 2 lakh electric three-wheelers.
- Around 80,000 electric four-wheelers.
- Around 1,400 electric buses.
Investment and Employment Impact
The scheme has attracted a cumulative investment of Rs 35,657 crore so far. It has also generated around 49,000 jobs. The Ministry has stated that the scheme is designed to encourage large-scale domestic production and support the wider EV ecosystem in India.
Policy Significance
The PLI-Auto Scheme incentivises only those products that achieve a minimum 50% domestic value addition. This condition is intended to promote local manufacturing, reduce import dependence, and improve technological capability in the automobile sector. The scheme is an important part of India’s push towards clean mobility and industrial self-reliance.
Last Modified: April 26, 2026