Government Unveils ₹30,000 Crore PLI Scheme For Advanced Auto Components

The Indian government has launched a new Production-Linked Incentive (PLI) scheme dedicated to Advanced Automotive Technology (AAT) components. With a substantial outlay of ₹30,000 crore over five years, the scheme aims to incentivize the domestic manufacturing of high-value parts, specifically targeting the electric vehicle (EV) and hydrogen fuel cell sectors.

The primary goal is to reduce India's heavy reliance on imported automotive components and establish the country as a global manufacturing hub. By providing incentives based on incremental sales, the government hopes to attract significant private investment into critical areas such as EV batteries, rare-earth magnets, and advanced sensors.

Beyond manufacturing, the scheme is expected to catalyze research and development within the automotive sector and create substantial employment opportunities. By fostering a robust ecosystem for AAT components, the initiative aims to secure India's position in the global automotive supply chain, ensuring long-term sustainability and technological self-reliance for the domestic industry.