Cabinet clears Rs 26,000-cr PLI scheme for auto sector to boost production

Over a period of five years, the PLI scheme for the auto sector will lead to fresh investments of over Rs 42,500 crore and incremental production of over Rs 2.3 trillion

The Union Cabinet on Wednesday approved a production-linked incentive (PLI) scheme with a budgetary outlay of Rs 25,938 crore to boost domestic manufacturing capabilities of the automobile industry, including electric and hydrogen fuel cell vehicles.

The scheme aims to incentivise high-value advanced automotive technology vehicles and products such as sunroofs, adaptive front lighting, automatic braking, tyre pressure monitoring system, and collision warning systems, among others.

Last year, the government had said it planned to allocate more than Rs 57,000 crore to the automobile and auto components industry for a period of five years. However, the allocation has been slashed by more than