India Allocates ₹5,940 Crore for FY27 PLI Scheme for Automobiles and Auto Components
The Indian Union Budget for FY27 has allocated ₹5,940 crore for the Production Linked Incentive (PLI) Scheme for Automobiles and Auto Components, reflecting a significant increase aimed at enhancing domestic manufacturing. Launched in 2021 and set to run until March 31, 2028, the scheme has already attracted investments of ₹35,657 crore and facilitated the production of over 1.36 million electric vehicles, creating nearly 49,000 jobs. Current incentives under the scheme range from 8% to 18%, depending on domestic value generation.
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The Union Budget for FY27 allocates ₹5,940 crore for the Production Linked Incentive (PLI) Scheme for Automobiles and Auto Components, administered by the Ministry of Heavy Industries. This marks a significant increase from previous fiscal years, reflecting a ramp-up in incentive payouts as projects progress.
The PLI scheme, launched in 2021, aims to boost domestic manufacturing of advanced automotive technology products and is set to run until March 31, 2028. As of December 31, 2025, the scheme has attracted investments totaling ₹35,657 crore and facilitated the production of over 1.36 million electric vehicles and nearly 49,000 jobs.
The scheme includes the Champion OEM incentive for battery electric and hydrogen fuel cell vehicles, and the Component Champion incentive for high-value automotive components. Current incentives range from 8% to 18%, contingent on domestic value generation.
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