The Indian government's production-linked incentive (PLI) scheme for the automobile and auto components sector, launched in 2021 with a budget of Rs 25,938 crore, has seen substantial interest and investments. Initially intended to boost domestic manufacturing of advanced automotive technology (AAT) products, the scheme later extended its tenure to March 2028. The incentives, based on incremental eligible sales over a base year, are set to be disbursed from 2024-25 to 2028-29. The PLI Auto scheme has two main components: Champion OEM incentive for electric and hydrogen fuel cell vehicles, and Component Champion incentive for high-tech components. Several prominent companies like Tata Motors, Mahindra & Mahindra, Maruti Suzuki, Toyota Kirloskar, and others have been approved to participate in the scheme, with Tata Motors and Mahindra & Mahindra already claiming significant incentives. Minister HD Kumaraswamy highlighted that the scheme aligns with the government's 'Make in India' initiative and will boost India's global competitiveness in the automotive sector. The PLI Auto scheme aims to ensure at least 50% value addition within the country and promote local manufacturing. The scheme, along with other initiatives like PM EDRIVE and PLI Advanced Chemistry Cell, is expected to not only enhance local manufacturing but also strengthen India's position in the global automotive market.