July 22, 2026 at 04:33 AM 2 min readautoNews Insights
Auto PLI Scheme Attracts ₹44,326 Crore Investment Across 225 Manufacturing Units
The scheme has led to the creation of 67,820 jobs and the establishment of 225 manufacturing units.
[Investment Milestone]:
India's Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry has successfully attracted a cumulative investment of ₹44,326 crore as of March 31, 2026. Launched in September 2021 with a budgetary outlay of ₹25,938 crore, the scheme aims to bolster domestic manufacturing capabilities for Advanced Automotive Technology (AAT) products.
[Regional Distribution]:
The initiative has facilitated the establishment of 225 manufacturing units nationwide. Maharashtra leads the industrial expansion with 66 units, followed by Tamil Nadu with 38 and Haryana with 35. This geographic spread underscores the government's effort to decentralize high-tech automotive manufacturing and create a robust supply chain ecosystem across key industrial corridors.
[Job Creation and Compliance]:
Beyond capital infusion, the scheme has generated 67,820 jobs and disbursed ₹2,386.36 crore in incentives. To ensure high-quality domestic production, the policy mandates a minimum Domestic Value Addition (DVA) of 50%. As of July 16, 2026, 18 applicants have successfully secured DVA certificates for 154 distinct products or variants, signaling strong industry commitment to localizing advanced automotive technologies and reducing reliance on imported components.
Pulse Intelligence
Context & ImpactContext & Background
- The PLI scheme for the auto sector was originally approved in September 2021 with a total outlay of ₹25,938 crore.
- The scheme requires a minimum Domestic Value Addition (DVA) of 50% to qualify for government incentives.
- The program focuses specifically on Advanced Automotive Technology (AAT) products to modernize the Indian auto industry.
Key Consequences
- Increased domestic production of AAT components will likely reduce import dependency for major automakers.
- Continued job creation in the manufacturing sector will support regional economic growth in states like Maharashtra and Tamil Nadu.
- More companies are expected to apply for DVA certification as they scale their local manufacturing operations.
Market & Economic Impact
Not applicable.
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