PLI Scheme for Automobile and Auto Components Drives Rs 44,326 Crore Investment

PLI Scheme Drives Automotive Investment and Job Creation

The PLI Scheme for Automobile and Auto Components has attracted cumulative investment of more than Rs 44,326 crore and created close to 68,000 jobs, according to Union Minister for Heavy Industries and Steel H D Kumaraswamy. Speaking at the 8th FADA Auto Retail Conclave 2026, Kumaraswamy said the Rs 25,938-crore program has 82 approved applicants, with incentives extended to more than 30.6 lakh vehicles. The figures highlight the scale of government-backed support for domestic automotive manufacturing and investment, with the program encouraging companies to expand production and strengthen industrial capabilities in India.

Domestic Value Addition Remains a Key Requirement

Kumaraswamy emphasized that incentives under the program are available only for products achieving at least 50% domestic value addition, reinforcing the government's focus on deeper localization across the automotive supply chain. “This is not import substitution on paper. It is value being created in India,” Kumaraswamy said. He added that manufacturing must remain central to India's economic growth as the country works toward its Viksit Bharat 2047 goal. At the same time, he stressed that industrial expansion should generate tangible economic benefits for households, connecting manufacturing growth with broader employment and inclusive development.

Automotive Retail Network Supports Local Employment

The minister also highlighted the scale of India's automotive retail ecosystem, which comprises around 15,000 dealerships and more than 30,000 outlets nationwide. According to Kumaraswamy, this extensive network supports employment at the district level and brings job opportunities closer to families, strengthening the connection between automotive industry growth and local economic activity. The retail footprint forms an important part of the broader automotive ecosystem, extending the impact of manufacturing and vehicle demand beyond factories and supply chains into communities across the country. This distribution network also contributes to the wider employment effects associated with automotive industry expansion.

PM E-DRIVE Adds Electric Mobility Support

Kumaraswamy also pointed to the government's electric mobility efforts through the Rs 10,900-crore PM E-DRIVE scheme, signaling continued policy support for the industry's transition toward cleaner mobility. He connected this transition with the broader objective of keeping growth broad-based and ensuring that customers remain central to policy and industry decisions. “Bharat is indeed in the driver’s seat. Let us keep the growth broad-based, keep the transition human, and keep the Indian customer at the centre of every decision,” Kumaraswamy said. Together, the PLI and PM E-DRIVE initiatives reflect the government's parallel focus on manufacturing, localization, jobs, and electric mobility.

Frequently Asked Questions

What has the automotive PLI program achieved so far?
The program has attracted more than Rs 44,326 crore in cumulative investment and generated close to 68,000 jobs, while incentives have been extended to more than 30.6 lakh vehicles. It has 82 approved applicants and requires eligible products to achieve at least 50% domestic value addition. The initiative is designed to strengthen automotive manufacturing, deepen localization, support employment, and encourage investment within the domestic supply chain. The government is also pursuing electric mobility through the Rs 10,900-crore PM E-DRIVE scheme.