India’s auto sector is turning policy into money and muscle. As of June 30, 2026, the Production-Linked Incentive (PLI) scheme for automobiles and auto components has attracted Rs 45,477 crore in investment and created over 67,000 jobs, 

The next phase will be about scale, deeper localisation, innovation, and making India a globally competitive hub for advanced and green mobility technologies, said Union Heavy Industries and Steel Minister HD Kumaraswamy as he shared the data on Wednesday. 

“The next phase must be about leadership—building scale, deepening localisation, accelerating innovation and establishing India as a globally competitive hub for advanced and green mobility technologies,” Kumaraswamy told the 66th Annual Session of the Automotive Component Manufacturers Association of India (ACMA) in Delhi on September 2.

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India’s auto PLI is funding a green mobility leap with hard numbers as the push is backed by PM E-DRIVE’s enhanced Rs 11,900 crore outlay for 45.79 lakh e-two-wheelers (25.66 lakh+ already supported), Rs 4,391 crore for 14,028 e-buses, a Rs 3,435 crore payment security mechanism for 38,000+ e-buses, Rs 2,000 crore for public charging (7,254 chargers approved), and an Rs 18,100 crore battery PLI targeting 50 GW domestic capacity.

Where the money is going: PLI, EVs, batteries and charging

The central government is backing this push with schemes designed to move money into factories, supply chains and on-road vehicles.

  1. Auto PLI (Rs 25,038 crore outlay): Approved applicants have reported investments of Rs 45,477 crore and generated more than 67,000 jobs. The aim is not just higher output, but stronger domestic value addition and capabilities in advanced automotive tech.
  2. PM E-DRIVE for EVs: The outlay has been enhanced by Rs 1,000 crore to Rs 11,900 crore to support 45.79 lakh electric two-wheelers. So far, more than 25.66 lakh e-two-wheelers, 2.75 lakh e-three-wheelers and 53 electric trucks have been supported.
  3. Electric buses: Rs 4,391 crore has been allocated for 14,028 electric buses, with 13,800 already allocated. A separate Payment Security Mechanism with an outlay of Rs 3,435 crore supports the deployment of more than 38,000 electric buses.
  4. Charging infrastructure: Rs 2,000 crore is earmarked for public charging. Proposals worth Rs 729 crore covering 7,254 chargers have been approved so far.
  5. Battery storage PLI (Rs 18,100 crore): This scheme targets 50 GW of domestic advanced chemistry cell battery capacity, a critical input for EVs and grid storage.
  6. Rare-earth magnets: The government is also strengthening domestic capacity in sintered rare-earth permanent magnets, which are key for electric motors, to reduce import dependence.

Together, these numbers show a coordinated money flow as incentives for manufacturers, subsidies for buyers, funding for buses, and capital for charging and batteries—meant to lock in a durable EV ecosystem.

“Create in India, Engineer in India, Innovate in India”

ACMA President Vikrampati Singhania said the auto component industry crossed Rs 7.6 lakh crore in turnover in 2026, growing 12.7%, while exports reached USD 24 billion.

“The next phase must increasingly be about Create in India, Engineer in India and Innovate in India for India and for the world,” Singhania said, calling the opportunity “generational” and urging stronger government–industry collaboration.

Minister Kumaraswamy also stressed that success should not be measured only by EV sales.

“The real measure of success must include how much technology is designed in India, how much value is added domestically, how many Ministry of Micro, Small and Medium Enterprises of India (MSMEs) participate in emerging supply chains and how effectively Indian products compete in global markets,” he said.

Keeping growth customer-centric

In a separate address to the Federation of Automobile Dealers Association (FADA), the minister underlined that manufacturing must translate into household prosperity.

“As we advance towards Viksit Bharat 2047, manufacturing must be at the core of our economic growth. But manufacturing alone does not build a nation’s prosperity. It must reach the household. Let us keep the growth broad-based, keep the transition human and keep the Indian customer at the centre of every decision we take,” Kumaraswamy said.

He noted that under PM E-DRIVE, with an initial outlay of Rs 10,900 crore, more than 26.5 lakh electric vehicles have been supported, while the auto PLI scheme carries an outlay of Rs 25,038 crore to deepen domestic manufacturing.

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From incentives to industrial leadership

The auto sector has received government support, with Rs 45,477 crore invested under the auto PLI scheme, creating more than 67,000 jobs. The Rs 11,900 crore PM E-DRIVE scheme supports electric vehicles, including 45.79 lakh e-two-wheelers, e-buses and charging infrastructure. Another Rs 18,100 crore is allocated under the battery storage PLI scheme to build 50 GW of domestic capacity. The auto component industry also grew strongly, with turnover reaching Rs 7.6 lakh crore in FY26, up 12.7%, while exports stood at USD 24 billion.

The central government’s aim is to use focused investments to expand the sector, increase local production and help Indian companies develop and export advanced mobility technology. The goal is for India to not just be part of the global mobility shift, but to become a leader in it.