Auto companies to meet PLI goals a year earlier
production-linked incentive
programme for automobiles and auto components (
PLI-Auto
) to achieve targets and exhaust the scheme funds in the fourth year itself.
The government approved the scheme in September 2021 with a ₹25,938 crore budgetary outlay. Incentives are disbursed for meeting goals including incremental production, investment and domestic value addition 2023-24 onwards.
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A senior official aware of the scheme's progress said the goal will likely be met a year ahead of expectations. The Centre's goal has been to create global champions and that it is on track, the official said, brushing aside criticism that many small auto component makers are not meeting scheme goals, or are completely excluded from it.
Tata Motors
, Mahindra & Mahindra,
Bajaj Auto
, Ola Electric and TVS Motor Co are among the major companies that have raised claims under the scheme till now.
"Budgetary fund allocation for current fiscal is expected to be exhausted in a few months...the trend suggests there will be much higher disbursements in next two years," another senior official told ET. Budget 2025-26 earmarked ₹2,818.85 crore for disbursal under this scheme.
Five automobile companies have raised claims totalling more than ₹2,000 crore for achieving the scheme's goals in FY25. Officials said ₹322 crore have been released so far for FY24.
While auto companies are faring well, there are concerns about component makers not meeting goals.
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