Jeet B Bhayani (SEBI RA)
11 Sep • 10:42 AM · SEBI-Registered Analyst
Auto PLI Scheme Draws ₹45,477 Crore Investments
India's Production Linked Incentive (PLI) scheme for automobiles and auto components has successfully catalyzed ₹45,477 crore ($4.82 billion) in actual investments and created over 67,000 jobs as of June 30, 2026, according to Union Minister for Heavy Industries and Steel H.D. Kumaraswamy. To sustain this momentum, the government increased the outlay for its electric two-wheeler subsidy program by ₹1,000 crore ($105.96 million) to ₹11,900 crore ($1.26 billion), aiming to support nearly 45.8 lakh electric two-wheelers. Prior public initiatives have already subsidized more than 25.66 lakh electric two-wheelers, 2.75 lakh electric three-wheelers, and 53 electric trucks. Furthermore, out of ₹4,391 crore ($465.25 million) earmarked to deploy 14,028 electric buses across public transit fleets, 13,800 units have already been allocated to state transport authorities.
To overcome infrastructure and supply chain bottlenecks, the government has allocated ₹2,000 crore ($211.91 million) toward public charging infrastructure—approving ₹729 crore ($77.24 million) for 7,254 chargers—and established a ₹3,435 crore ($363.96 million) payment security mechanism to back over 38,000 electric buses. Upstream, the ₹18,100 crore ($1.92 billion) ACC Battery Storage PLI scheme targets establishing 50 GWh of domestic cell manufacturing capacity alongside critical components like sintered rare-earth permanent magnets. This policy push aligns with robust operational performance: India's auto component sector expanded 12.7% to cross ₹7.60 lakh crore ($86.00 billion) in FY26, with exports reaching ₹2.27 lakh crore ($25.69 billion), cementing the nation's position as a globally competitive hub for clean mobility.
