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Higher PLI allocation to accelerate EV adoption
The Business Guardian
|February 03, 2026
The three-time increase in allocation for the Production Linked Incentive (PLI) scheme for automobiles and auto components in the Union Budget 2026 is likely to significantly support electric vehicle (EV) penetration and localisation of component manufacturing, according toa report by Axis Asset Management.
In the Union Budget 2026, the allocation under the PLI scheme for automobiles and auto components has been increased threefold to Rs 59.4 billion for FY27, compared to Rs 20 billion in FY26.
As per report, this sharp rise in allocation reflects the government's continued focus on strengthening domestic manufacturing and accelerating the transition towards electric mobility.
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