The Production Linked Incentive scheme for the automobile and auto-component industry has catalyzed substantial private capital investments totaling ₹45,477 crore and generated over 67,000 direct manufacturing jobs nationwide, according to a comprehensive review by the Ministry of Heavy Industries.
The flagship industrial scheme, introduced to foster indigenous manufacturing of Advanced Automotive Technology products and electric vehicle subsystems, has exceeded its initial phase investment targets by twenty-eight percent. Eighty-five approved corporate beneficiaries, including domestic automakers and Tier-1 component suppliers, have commissioned twenty-six modern manufacturing units across key industrial clusters in Tamil Nadu, Maharashtra, Gujarat, and Karnataka.
Heavy Industries Minister H.D. Kumaraswamy stated that the initiative has dramatically reduced India’s import reliance on specialized automotive electronic sensors, battery management systems, and electric drivetrains. Domestic manufacturing localization levels across selected EV categories have crossed seventy-five percent, enabling local producers to scale export shipments to European and Southeast Asian markets.
The review noted that participating enterprises have invested heavily in localized research, development, and testing centers, fostering deep technical skill development among young engineering graduates. The ministry disbursed initial incentive tranches totaling ₹2,140 crore following third-party verification of local value addition thresholds by testing agencies like ARAI and ICAT.
Industry trade bodies praised the policy for transforming India from a conventional vehicle assembler into an advanced component manufacturing hub. The government confirmed plans to extend specialized testing subsidies to accelerate next-generation solid-state battery and hydrogen fuel cell component manufacturing.
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Sources:
https://school.edusaint.in/news/school-assembly-news-headlines-7-september-2026