PLI scheme for auto sector likely to create 7.5 lakh more jobs in 5 years
- Ford, Tata Motors, Suzuki, Hyundai, Kia and Mahindra are among 20 companies selected for incentives under the PLI scheme for the auto sector.


The Centre's Production Linked Incentives (PLI) Scheme, which recently picked 20 carmakers for incentives, is likely to generate around 7.5 lakh jobs in the auto and auto component sector in the next five years. An official in Heavy Industry ministry said that the scheme will lead to incremental production worth ₹2,31,500 crore.
The Centre's PLI scheme aims to boost the production of electric and hydrogen fuel-powered vehicles in India. Under the scheme, incentives are applicable for determining sales of advanced automotive technology products, including vehicles and components manufactured in India from April 2022 onwards for a period of five years.
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Ford, Tata Motors, Suzuki, Hyundai, Kia and Mahindra are some of the key names among 20 carmakers selected for incentives under the scheme for the automobile and auto components sector. These carmakers have been approved under the Champion Original Equipment Manufacturers (OEM) Incentives scheme.
Arun Goel, Secretary in the Heavy Industry Ministry, told news agency PTI, "The 20 companies we selected have committed an investment of more than ₹45,000 crore. So as per our scheme target, our scheme is of ₹25,938 crore, so we expect this will lead to incremental production of ₹2,31,500 crore."
Goel said that the scheme aims to promote local manufacturing. The emphasis on Made in India comes with the condition that at least 50 per cent of production should be local and include the micro, small and medium enterprises. "So, if somebody is importing cars from outside India and just screwing them up here, assembling them, he will not get benefits under the scheme. He has to produce at at least 50 per cent in India in terms of value addition," Goel added.
As a result, revenue for the MSMEs are also expected to increase leading to job creation. "So we are estimating 7.5 lakh additional jobs to be created in India as a result of this scheme in the next five years," the secretary said.
The 20 applicants selected also include heavy commercial vehicle manufacturers like Ashok Leyland, Eicher Motors, PCA Automobiles India, Pinnacle Mobility Solutions and Suzuki Motor Gujarat.
Under the two-wheeler and three-wheeler category, Centre has picked Bajaj Auto, Hero MotoCorp, Piaggio Vehicles and TVS Motor for the PLI scheme. Axis Clean Mobility, Booma Innovative Transport Solutions, Elest, Hop Electric Manufacturing, Ola Electric Technologies, and Powerhaul Vehicle have been picked under the new Non-Automotive Investor (OEM) category.
A total of 115 companies had filed their application under the PLI scheme for automobile and auto component industry which was notified on September 23, 2021.
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