Auto PLI Scheme To Expand Beneficiaries From FY27, Stricter Action On Non-Investing Firms

India’s auto sector is set for a major policy shift as the government prepares to expand the Production-Linked Incentive (PLI) scheme. According to reports, eight new companies will be added as beneficiaries from FY27, reflecting rising interest in electric vehicles, advanced automotive technologies, and component manufacturing. At the same time, authorities are tightening compliance, warning of action against firms that fail to fulfill investment obligations under the scheme.  

Key highlights from the announcement include  

• The auto PLI scheme, launched in 2021 with an outlay of Rs 25,938 crore, aims to boost domestic manufacturing and exports.  
• Eight new beneficiaries will be added from FY27, expanding the scheme’s reach to more players in the sector.  
• Companies that fail to meet investment commitments risk exclusion, ensuring accountability and efficient use of incentives.  
• The scheme has already attracted major automakers and component manufacturers, with investments focused on electric vehicles and advanced technologies.  
• Government officials emphasize that the expansion aligns with India’s broader push for self-reliance and sustainable mobility.  
• The inclusion of new firms is expected to accelerate innovation and strengthen India’s position in the global automotive supply chain.  
• Industry experts note that stricter compliance measures will enhance credibility and prevent misuse of incentives.  
• The scheme is part of India’s larger industrial policy framework, supporting Make in India and Atmanirbhar Bharat initiatives.  
• By FY27, the auto PLI program is expected to contribute significantly to employment generation and technology adoption.  
• The government is also monitoring global trends to ensure India remains competitive in the evolving automotive landscape.  

The expansion of the auto PLI scheme signals a dual approach: encouraging new investments while enforcing accountability. With eight new beneficiaries set to join and stricter action against non-compliant firms, India’s automotive sector is poised for stronger growth, innovation, and global competitiveness in the coming years.  

Sources: Economic Times, Business Standard, Mint, Moneycontrol