India’s PLI Drive Powers $65 Billion Auto & Battery Revolution

India’s Production Linked Incentive (PLI) schemes are reshaping the country’s industrial landscape, targeting advanced automotive technologies and domestic battery manufacturing to strengthen self-reliance and global competitiveness.

It was on September 2021 when Government of India approved the PLI Scheme for Automobile and Auto Component Industry in India (PLI-Auto) with a budgetary outlay of Rs.25,938 crore for enhancing India’s manufacturing capabilities for Advanced Automotive Products. 

PLI Auto is a pan-India Scheme and approved applicants are free to set up units anywhere in the country.

PLI cheme on “National Programme on Advanced Chemistry Cell (ACC) Battery Storage”, approved in May 2021, with an outlay of ₹18,100 Crore for 50 GWh capacity. However, till date, no beneficiary firm has claimed any incentive under the PLI ACC scheme. As reported by the beneficiary firms, the scheme has attracted an investment of ₹5,180 crore and direct employment of 1,277 till May 2026.

India’s PLI Schemes for Automobiles, Auto Components & Battery Storage

Background & Objectives

• PLI for Automobiles & Auto Components
  Announced in September 2021 with a budget of ₹25,938 crore (~$26.9 billion).
  Focuses on Advanced Automotive Technology (AAT) products — electric vehicles, hydrogen fuel cell vehicles, and high-tech components.
  Goal: Position India as a global hub for EVs and advanced auto manufacturing.
  
• PLI for Advanced Chemistry Cell (ACC) Battery Storage
  Launched in May 2021 with a budget of ₹18,100 crore (~$18.8 billion).
  Target: Establish 50 GWh domestic manufacturing capacity for advanced batteries.
  Goal: Reduce import dependence and support India’s EV ecosystem.
  

Progress in Automobiles & Auto Components

• Investments attracted: ₹44,326 crore (~$45.9 billion)
• Jobs created: 67,820
• Incentives disbursed: ₹2,386.36 crore (~$2.47 billion)
• Incremental sales: ₹52,414 crore (~$54.3 billion) over FY20 baseline

State-wise Distribution of Units

State	Units
Maharashtra	66
Tamil Nadu	38
Haryana	35
Karnataka	28
Uttar Pradesh	13
Others (Gujarat, Uttarakhand, Rajasthan, MP, Telangana, AP, Jharkhand, Assam, Kerala, Puducherry, Punjab)	45

Progress in Battery Storage

• Investment attracted: ₹5,180 crore (~$5.37 billion)
• Jobs created: 1,277
• Incentives claimed: None yet (capacity not fully commissioned)

Awarded Projects (40 GWh capacity)

• ACC Energy Storage Pvt. Ltd. – 5 GWh (Karnataka)
• Ola Cell Technologies Pvt. Ltd. – 20 GWh (Tamil Nadu)
• Reliance New Energy Battery Storage Ltd. – 5 GWh (Gujarat)
• Reliance New Energy Battery Ltd. – 10 GWh (Gujarat)

Challenges

• Automobile PLI: Companies must meet 50% Domestic Value Addition (DVA) to qualify for incentives, requiring deep localisation.
• Battery PLI: Commissioning delays — only Ola has installed 1 GWh capacity so far.
• Global competition: India must accelerate to compete with China, South Korea, and Europe in EV batteries.

Conclusion

The PLI-Auto scheme has already delivered strong results, driving investments and job creation across India’s auto hubs. Meanwhile, the PLI-ACC battery scheme is progressing slower, but remains critical for India’s EV future. Together, these schemes are central to India’s Atmanirbhar Bharat vision, reducing import dependence and building global competitiveness.

Breakdown of India’s $65 Billion PLI Schemes

India’s Production Linked Incentive (PLI) schemes for automobiles, auto components, and advanced battery storage represent a combined scale of over $65 billion, based on official government data and credible reporting.

Breakdown of Figures

Scheme / Metric	INR (₹ crore)	USD (approx.)
PLI-Auto Scheme Budget	25,938	$26.9 billion
PLI-ACC Battery Scheme Budget	18,100	$18.8 billion
Investments attracted under Auto PLI	44,326	$45.9 billion
Investments attracted under Battery PLI	5,180	$5.37 billion
Incentives disbursed (Auto PLI)