India’s Production Linked Incentive (PLI) Scheme for the automobile and auto component sector has exceeded its investment target ahead of schedule, with approved applicants reporting investments of ₹44,326 crore as of March 31, 2026, according to the Ministry of Heavy Industries.
The government said the PLI Scheme for the Automobile and Auto Component Industry (PLI-Auto), approved on September 23, 2021, carries a budgetary outlay of ₹25,938 crore to strengthen domestic manufacturing of Advanced Automotive Technology (AAT) products.
As of March 31, 2026, companies approved under the scheme had reported cumulative investments of ₹44,326 crore, crossing the scheme’s investment target of ₹42,500 crore, which was originally set to be achieved by March 31, 2027. The figures indicate that investments have surpassed the target nearly a year ahead of the scheduled timeline.
The Ministry also provided an update on the government’s efforts to strengthen India’s automotive manufacturing ecosystem beyond the PLI-Auto programme.
It said the Request for Proposal (RFP) under the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets was issued on March 20, 2026. The initiative is intended to encourage domestic production of critical magnet components that are widely used in advanced mobility and clean energy technologies.
Separately, under the PM E-DRIVE Scheme, the government has earmarked ₹780 crore as grant support for upgrading automotive testing agencies by creating capital assets and improving testing infrastructure.
According to the Ministry, ₹16.63 crore had been disbursed to these testing agencies as of July 20, 2026.
The update was shared by the Ministry of Heavy Industries in a written response, highlighting the progress of key initiatives aimed at expanding India’s advanced automotive manufacturing capabilities and supporting the broader electric mobility ecosystem.
Source: This article is based on an official press release issued by the Press Information Bureau, Ministry of Heavy Industries, Government of India
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