Major Automakers Set to Benefit from PLI Scheme

NEW DELHI: In a significant boost to the auto sector, leading manufacturers such as Tata Motors, Bajaj Auto, Mahindra & Mahindra (M&M), Ola Electric, and TVS Motor are projected to claim over Rs 2,000 crore under the Production Linked Incentive (PLI) scheme this fiscal year, according to government estimates.

Breakdown of Expected Claims

Among the contenders, Bajaj Auto leads with an expected claim of Rs 630 crore, followed by Tata Motors at Rs 409 crore and Ola Electric at Rs 380 crore. TVS Motor and M&M are not far behind, with projected claims of Rs 330 crore and Rs 283 crore, respectively.

Government's Commitment to the Auto Sector

Heavy industries minister HD Kumaraswamy recently reviewed the PLI scheme, emphasizing the government's dedication to supporting applicants with operational aspects, claims, and enhancing domestic value addition (DVA). "The scheme has already attracted Rs 29,576 crore in domestic investments by March 2025," Kumaraswamy noted, promising regular industry workshops and faster claim disbursals to foster a self-reliant auto sector.

Looking Ahead

Despite the impressive claims, there's a shortfall of Rs 702 crore against the FY26 Budget target. However, companies have until September to submit their applications, offering a window to bridge the gap. The PLI scheme, launched in September 2021 with a Rs 25,938 crore allocation, aims to bolster domestic manufacturers of Advanced Automotive Technology (AAT) products against cost challenges.