The Government of India has disbursed about Rs 2,377.56 crore under the Production Linked Incentive (PLI) scheme for the automobile and auto components sector. The scheme is part of a broader policy covering 14 sectors aimed at increasing domestic manufacturing, investment, and exports.
Production Growth in Auto and Auto Components
Under the PLI scheme, companies in the automobile and auto components segment reported incremental production of around Rs 13,126 crore in the current financial year up to December 2025. A total of 72 companies are part of the scheme in this sector.
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Electronics Sector Leads in Incentive Disbursement
While the automotive sector received Rs 2,377.56 crore, the electronics sector recorded a higher incentive disbursement of Rs 15,554 crore under its PLI programmes, including large-scale electronics manufacturing and IT hardware. In the same period, 59 companies in the electronics segment reported incremental production of about Rs 2,45,375 crore.
Overall PLI Scheme Performance
Across all 14 sectors, the PLI schemes have attracted investments of over Rs 2.16 lakh crore. Incremental production during the current financial year up to December 2025 stands at approximately Rs 4,20,581 crore. Since the launch of these schemes, total production or sales generated has crossed Rs 20.41 lakh crore, with exports exceeding Rs 8.3 lakh crore. The schemes have also contributed to employment generation for more than 14.39 lakh people, including both direct and indirect jobs.
Related Government Initiatives
Alongside the PLI schemes, several other programmes are being implemented to support manufacturing and supply chains:
- Semicon India Programme to develop domestic semiconductor capacity
- Electronics Component Manufacturing Scheme (ECMS), SPECS, EMC and M-SIPS for electronics ecosystem development
- PM Gati Shakti for infrastructure planning and logistics coordination
- National Logistics Policy focusing on reducing logistics costs and improving efficiency
- Scheme for manufacturing of rare earth permanent magnets
- National Critical Mineral Mission to secure supply of key minerals
Elctrik Speaks
The data indicates that while the automotive PLI scheme has begun contributing to incremental production, the scale of incentives and output remains lower compared to electronics. For the auto industry, especially electric mobility and advanced components, sustained investment and policy continuity will be important to expand domestic manufacturing capacity and reduce dependence on imports.
