The Ministry of Heavy Industries in India has announced plans to introduce production-linked incentives (PLI) for the automobile and auto component sectors to stimulate domestic manufacturing and the production of advanced automotive technology goods. The Rs 25,938 crore output-linked incentive plan, launched in 2021, targets investments in the automobile manufacturing value chain to enhance local production of advanced automotive technology products. Incentives under the program are tied to the determined sales value, with the first payouts expected in the fiscal year 2024-2025. The scheme includes the Champion OEM incentive program for battery electric and hydrogen fuel cell vehicles and the Champion component incentive program for high-tech components. The initiative has attracted leading firms like Tata Motors, Maruti Suzuki, and Hyundai, among others, with investments totaling Rs 20,715 crore by September 2024. Minister HD Kumaraswamy has expressed optimism about the program's impact, noting that companies are meeting the 50% domestic value addition requirement. This positive trend is expected to drive further local production of cars and auto parts, fostering economic growth and technological advancement in the Indian automotive industry.