PLI Auto Incentives Cross Rs 322 Crore, Investment Surpasses Rs 25,000 Crore

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

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Saurabh Agarwal, Partner & Automotive Tax Leader at EY India, said, "With US automotive tariffs rising, India's electric vehicle sector has a prime opportunity to capture a larger share of the US market, especially in the budget car segment. China's 2023 auto and component exports to the US stood at $17.99 billion, while India's were only $2.1 billion in 2024, highlighting the potential for growth. To accelerate this, the government should enhance the PLI scheme by including more auto components, opening it to new players, and extending it by two years."

Investments, Employment, Sales, and Disbursements Under the PLI Scheme

• Investments: As of Dec 2024, companies under the scheme have committed over Rs 25,000 crore in capital investment, including setting up new production facilities and upgrading technology. For instance, Tata Motors and Mahindra & Mahindra have committed to massive investments in EV production capacity

• Employment: 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.

• Sales: 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.

• Disbursement: FY 2023-24 was the first performance year of the scheme for which disbursement happened in FY 2024-25. Aggregate incentive of Rs 322 crores have been disbursed under the scheme as of now.

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With ongoing investments and policy measures, the scheme is expected to increase India's role in the global automotive supply chain, reduce import reliance and support technology in the auto sector.

Hitesh Garg, VP and Managing Director, NXP Semiconductors, said, "Government of India’s approval of the PLI scheme for semiconductor components is a significant step towards strengthening the country’s electronics ecosystem and driving self-reliance. With an incentive of Rs 22,919 crore, this initiative aims to boost domestic production of key semiconductor components, reduce import dependencies, and create nearly 92,000 direct jobs. By supporting the development of essential chip components, compound semiconductors and advanced packaging technologies, the policy will help establish a more resilient and globally competitive supply chain."