The Production Linked Incentive (PLI) scheme for automobile and auto components has attracted Rs 25,219 crore in investment and created 38,186 jobs as of December 2024, said the Ministry of Heavy Industries.

It further said that the incremental sales of Rs 15,230 crore were reported over the base year of FY 2019–20.

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Further, the Centre has disbursed incentives worth Rs 322 crore under PLI for automobile and auto components for FY24.

The disbursements were made to Tata Motors, Mahindra & Mahindra, Ola Electric Technologies and Toyota Kirloskar Auto Parts.

“PLI-Auto Scheme envisages to overcome the cost disabilities to the industry for manufacturing and boost domestic manufacturing of Advanced Automotive Technology (AAT) products in India,” the government said in a statement.

It said that the scheme also has created thousands of direct and indirect jobs in manufacturing, supply chain management, and R&D. Notably, new EV production plants have led to localized employment in manufacturing hubs.

In terms of sales, growth in sectors like electric vehicles (EVs) and critical components have seen significant improvements. For example, the introduction of new models in the EV sector has led to rise in sales, the statement read.

Notably, the PLI Auto scheme has been responsive to the dynamic needs of the industry. MHI had notified the categories of 19 AAT vehicles & 103 AAT components that shall be covered under the scheme in November 2021 after elaborate stakeholder’s consultations.

Further, to promote the Make in India campaign and boost domestic manufacturing of advanced automotive products, scheme applicants must achieve a DVA of 50% to be eligible for incentives.

This criterion aims to reduce imports and simultaneous creation of domestic as well as global supply chains.

So far, 6 OEMs have got DVA certificates for 66 Approved Variants and 7 component manufacturers have got DVA certificates for 22 Approved Variants.

As on date, 6 applicants under the OEM category have received DVA certification for 66 variants, while 7 Applicants under the Component Champion category have received DVA certification for 22 variants.

The development comes after the US President Donald Trump on Wednesday announced imposition of 25% tariffs on auto imports from April with another 25% tariffs expected to be applied on imports of major automotive parts — engines and engine parts, transmissions and powertrain parts, and electrical components by May.