According to a comprehensive evaluation report released in November by NITI Aayog and the Indian Institute of Management Ahmedabad, Bajaj Auto emerged as the top beneficiary of the Indian government’s ₹25,938 crore production-linked incentive (PLI) scheme for automobiles and auto components in FY26, securing ₹625.65 crore in payouts. Bajaj Auto led a cohort of five major automakers that collectively received nearly ₹2,000 crore during the fiscal year, followed by Tata Motors at ₹403.18 crore, Ola Electric Technologies at ₹366.78 crore, TVS Motor at ₹320.51 crore, and Mahindra & Mahindra at ₹283.82 crore. This marked a dramatic escalation from FY25, when total disbursements stood at roughly ₹322 crore and neither Bajaj Auto nor TVS Motor received any incentives, bringing cumulative scheme payouts to ₹2,386.36 crore, or about 9.2 percent of the total outlay, by March 2026. While financial disbursements and capital inflows gained substantial momentum—with total investments reaching ₹44,326 crore by March 2026 to surpass the five-year projection of ₹42,500 crore by roughly 4 percent—the report flagged critical shortfalls in employment generation and incremental revenue. Specifically, the scheme generated 67,820 jobs against a target of 148,147, achieving roughly 46 percent of projections, while cumulative incremental sales stood at ₹52,414 crore, representing only 23 percent of the ₹2.31 trillion five-year goal. Industry analysts attributed the employment lag to the capital-intensive, automated nature of advanced automotive and electric vehicle manufacturing, noting that initial investments in technology and production lines do not immediately yield proportional job growth until supplier ecosystems mature. Despite these hurdles, the scheme catalyzed a massive surge in incentivised electric vehicle production, with total volumes jumping from 76,838 units in FY24 to nearly 1.285 million units in FY25. Electric two-wheelers spearheaded this expansion, climbing from 41,758 to over one million units, alongside substantial growth in electric three-wheelers from 23,486 to nearly 215,000 units and electric four-wheelers from 11,314 to 68,226 units. However, manufacturers operating under both the Champion OEM and Component Champion categories continue to grapple with stringent 50 percent domestic value-addition norms due to India’s still-developing supply chain for advanced EV components, alongside high investment thresholds that naturally favor large corporations. Consequently, only eight Champion OEM applicants across 94 variants and 10 Component Champion applicants across 37 variants have achieved localisation certification thus far. Ultimately, while the report noted insufficient data to isolate the PLI scheme’s exact impact on exports and organic industry growth, the findings underscore a pivotal transition phase where surging capital expenditure and EV output must now translate into deeper domestic supply chains and broader job creation.
Bajaj Auto Leads Auto PLI Payouts in FY26 at ₹625.65 Crore Ahead of Tata Motors and Ola Electric
