The Ministry of Heavy Industries has highlighted the Performance-Linked Incentive (PLI) Auto Scheme. It is considered a game-changer for India’s automotive manufacturing sector.
The scheme is enhancing domestic production, reducing reliance on imports, and integrating Indian manufacturers into the global supply chain.
On September 15, 2021, the Union Cabinet approved the PLI Scheme for Automobiles and Auto Components with a substantial budget of ₹25,938 crore.
This initiative aims to address cost challenges in the industry. It also promotes the domestic production of Advanced Automotive Technology (AAT) products.
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The PLI Auto Scheme incentivizes fresh investments in indigenous manufacturing, boosting local production and creating new employment opportunities.
By supporting the development of AAT products, the initiative is shaping India into a competitive player in the global automotive market.
The government has designed the PLI Auto Scheme to adapt to the evolving needs of the industry.
After extensive consultations with stakeholders, the Ministry of Heavy Industries finalized a list of 19 AAT vehicle categories and 103 AAT components covered under the scheme.
These categories were officially notified on November 9, 2021.
With its structured incentive model and industry-focused approach, the PLI Auto Scheme is paving the way for a self-reliant automotive sector in India. It also aims to create a technologically advanced industry.
As companies invest in AAT manufacturing, the scheme will likely strengthen India’s position in the global automotive landscape.
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