India's automotive Production Linked Incentive scheme has attracted ₹44,326 crore in investments and created over 67,800 jobs by March 2026. While the auto component segment shows strong progress with incentive payouts, the separate Advanced Chemistry Cell battery storage scheme has yet to release any payouts despite significant investment.
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The Production Linked Incentive (PLI) scheme for India’s automotive and auto component sector has reached a milestone, securing ₹44,326 crore in total investments as of March 31, 2026. According to the Ministry of Heavy Industries, this initiative has generated 67,820 jobs, highlighting the push toward manufacturing advanced automotive technologies locally. The government has already distributed ₹2,386.36 crore in incentives to eligible manufacturers, providing a direct financial benefit to companies meeting the scheme's strict criteria.
Focusing on Local Manufacturing
At the heart of the scheme is the requirement for a minimum of 50% domestic value addition. This rule is designed to reduce India's reliance on imported automotive parts. Data shows that 18 applicants have successfully met these certification standards across 154 different products and variants as of July 16, 2026. By encouraging companies to source and manufacture components within India, the program aims to build a more self-reliant automotive supply chain.
The initiative has seen a wide geographical spread, with 225 manufacturing units now operating across the country. Maharashtra leads the pack with 66 facilities, followed by Tamil Nadu with 38 and Haryana with 35. This distribution suggests that the scheme is not tied to any single state, allowing manufacturers to choose locations based on their operational needs.
Contrasting Progress in Battery Storage
While the main auto PLI scheme is seeing steady incentive disbursements, the separate Advanced Chemistry Cell (ACC) battery storage PLI program faces a different scenario. Although it has attracted ₹5,180 crore in investments and created 1,277 direct jobs as of May 31, 2026, the government has not yet disbursed any incentives. This is because beneficiary firms have not yet filed claims for the subsidies.
Approved in May 2021 with an outlay of ₹18,100 crore, the ACC scheme was designed to support 50 GWh of domestic battery manufacturing capacity. Major players have been allocated significant capacity, including Ola Cell Technologies in Tamil Nadu, ACC Energy Storage in Karnataka, and Reliance New Energy Battery Storage in Gujarat. Investors should note that the absence of incentive payouts in the battery segment reflects the early, capital-intensive stage of these large-scale manufacturing projects, where production and domestic value milestones must be reached before payouts can begin.
Moving forward, the primary monitorable for investors will be the speed at which companies in the ACC battery segment achieve their production targets and file for incentive claims. For the broader auto sector, the focus will remain on whether the 50% domestic value addition requirement continues to drive stable margins for participating component manufacturers as they scale their new facilities.