**Executive Summary**
This document, posted by PIB Delhi on February 6, 2026, outlines the promotion of the automotive and heavy engineering sector in India. It presents data on automobile production, sales, and exports for January-December 2025, along with production, import, and export data for the capital goods sector for the financial year 2024-25. Furthermore, it details several Production Linked Incentive (PLI) schemes implemented by the Ministry of Heavy Industries to promote manufacturing, particularly for electric vehicles and advanced chemistry cell battery storage.
**Key Points / Main Content**
* **Automobile Sector Contribution:**
* Contributes approximately 15% of India's GST revenue.
* Employs an estimated 30 million people.
* **Automobile Production, Sales, and Exports (January-December 2025):**
* Passenger Vehicles: Production - 53.8 lakh, Sales - 44.9 lakh, Exports - 8.6 lakh
* Commercial Vehicles: Production - 11.1 lakh, Sales - 10.3 lakh, Exports - 0.9 lakh
* Three Wheelers: Production - 12.2 lakh, Sales - 7.9 lakh, Exports - 4.3 lakh
* Two Wheelers: Production - 255.0 lakh, Sales - 205.0 lakh, Exports - 49.4 lakh
* **Capital Goods Industry (Financial Year 2024-25):**
* Contributes about 1.9% of GDP.
* Sub-sector Production, Import, and Export (in Rs. crore):
* Machine Tools: Production - 14,286, Import - 18,686, Export - 1,472
* Dies, Moulds and Press Tools: Production - 18,400, Import - 9,400, Export - 2,300
* Textile Machinery: Production - 10,461, Import - 16,417, Export - 2,242
* Printing Machinery: Production - 29,716, Import - 12,651, Export - 2,584
* Earthmoving and Mining Machinery: Production - 80,750, Import - 4,250, Export - 6,800
* Plastic Processing Machinery: Production - 4,827, Import - 4,405, Export - 2,428
* Food Processing Machinery: Production - 15,249, Import - 10,850, Export - 4,562
* Process Plant Equipment: Production - 31,505, Import - 7,645, Export - 10,968
* **Ministry of Heavy Industries (MHI) Schemes:**
* **PLI Scheme for Automobile and Auto Component Industry (PLI-Auto):** Approved on September 15, 2021, with a budgetary outlay of ₹25,938 crore. Aims to enhance manufacturing capabilities for advanced automotive technology (AAT) products and requires minimum 50% Domestic Value Addition (DVA).
* **PM Electric Drive Revolution in Innovative Vehicle Enhancement:** Has an outlay of Rs.10,900 crore, providing demand incentives for various electric vehicles.
* **Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI):** Notified on March 15, 2024, requiring a minimum investment of ₹4150 crore and achieving DVA of 25% and 50% at the end of the third and fifth years, respectively.
* **PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage:** Approved on May 12, 2021, with a budgetary outlay of ₹18,100 crore, to establish a competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries.
* **State-wise Allocation:** There is no state-wise allocation under any scheme of the Ministry of Heavy Industries
**Impact Analysis**
**Automobile Manufacturers (SIAM Members), Capital Goods Manufacturers, Advanced Automotive Technology (AAT) Product Manufacturers, Electric Vehicle Manufacturers, and Advanced Chemistry Cell (ACC) Battery Storage Manufacturers**
**Impact:** Affected by government policies and incentives. Required to achieve Domestic Value Addition (DVA).
**Action Required:** Consider government support schemes (PLI schemes, incentives), and investment requirements, adjust production and manufacturing strategies to align with government objectives.
Key Entities Referenced
Ministry of Heavy Industries: The ministry responsible for promoting the automotive and heavy engineering sector and implementing related schemes.
Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (PLI-Auto): A government scheme to enhance manufacturing capabilities for advanced automotive technology products.
PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage: A government scheme for manufacturing of ACC in the country.
PM Electric Drive Revolution in Innovative Vehicle Enhancement: A government scheme for demand incentive for e-2W, e-3W, e-trucks, e-ambulances and grant for e-buses and promotes domestic manufacturing through phased manufacturing programme (PMP).
Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI): A government scheme to promote the manufacturing of electric cars in India.
Ministry of Heavy Industries
PROMOTION OF AUTOMOTIVE AND HEAVY
ENGINEERING SECTOR
Posted On: 06 FEB 2026 5:44PM by PIB Delhi
As per information received from Society of Indian Automobile Manufacturers (SIAM), the automobile
sector contributes nearly 15% of the country's GST Revenue Collections. The sector is also a significant
employment creator in the country with an estimated 30 million jobs (Direct: 4.2 Mn, Indirect: 26.5 Mn)
across the entire automotive value chain.The production, sales and exports of automobiles in India during
January to December, 2025 is as under : -
Production, Sales and Export of Automobiles in India (January–December 2025)
(Nos. in lakh) (Source:SIAM)
Category Production Sales Exports
Passenger Vehicles 53.8 44.9 8.6
Commercial Vehicles 11.1 10.3 0.9
Three Wheelers 12.2 7.9 4.3
Two Wheelers 255.0 205.0 49.4
Further,as per present estimates, the Capital Goods Industry contributes about 1.9% of GDP. This sector is
crucial for the development of domestic manufacturing capabilities from a national self-reliance
perspective. Production, Import and Export-data of the sector for the financial year 2024-25 are given as
under : -
(figures in Rs. crore)
Sl. No. Sub-sectors of Capital Goods Production Import Export
1 Machine Tools 14,286 18,686 1,472
2 Dies, Moulds and Press Tools 18,400 9,400 2,300
3 Textile Machinery 10,461 16,417 2,2424 Printing Machinery 29,716 12,651 2,584
5 Earthmoving and Mining Machinery 80,750 4,250 6,800
6 Plastic Processing Machinery 4,827 4,405 2,428
7 Food Processing Machinery 15,249 10,850 4,562
8 Process Plant Equipment 31,505 7,645 10,968
(Source : Industry Associations namely, IMTMA, TAGMA, TMMA, IPAMA, ICEMA, PMMAI, AFTPAI,
PPMAI)
Industry is a State subject and the Central Government does not deal with development of heavy industries
in any part of the country including the State of Rajasthan. Further, there is no state-wise allocation under
any scheme of the Ministry of Heavy Industries.
The Ministry of Heavy Industries (MHI) has implemented several schemes at the national level to promote
manufacturing of electric vehicles (EVs). The details are given below:
1. Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in
India (PLI-Auto): The Government approved this scheme on 15.09.2021 for Automobile and Auto
Component Industry for enhancing India's manufacturing capabilities for advanced automotive
technology (AAT) products with a budgetary outlay of ₹25,938 crore. The scheme proposes
financial incentives to boost domestic manufacturing of AAT products with minimum 50%
Domestic Value Addition (DVA) and attract investments in the automotive manufacturing value
chain.
2. PM Electric Drive Revolution in Innovative Vehicle Enhancement: This scheme with an outlay
of Rs.10,900 crore provides demand incentive for e-2W, e-3W, e-trucks, e-ambulances and grant for
e-buses and promotes domestic manufacturing through phased manufacturing programme (PMP).
3. Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI):
This scheme was notified on 15.03.2024 to promote the manufacturing of electric cars in India. This
requires applicants to invest a minimum of ₹4150 crore and achieve a minimum DVA of 25% at the
end of third year and DVA of 50% at the end of fifth year.
4. PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage:
The Government on 12.05.2021 approved PLI Scheme for manufacturing of ACC in the country
with a budgetary outlay of ₹18,100 crore. The scheme aims to establish a competitive domestic
manufacturing ecosystem for 50 GWh of ACC batteries.
The PLI Auto and Auto Component scheme has been implemented on pan India basis and there are 8
manufacturing locations reported by the approved applicants in the state of Rajasthan.The PLI ACC scheme, being a national programme, does not define or mandate particular locations for
setting up cell manufacturing units. Beneficiary firms can choose their own preferred locations based on
strategic business needs, infrastructure and resource availability, ensuring flexibility in establishing
facilities across India. Currently, there are no manufacturing units located in Rajasthan under the PLI ACC
scheme.
This information was given by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa
Varma in a written reply in the Rajya Sabha.
*****
TPJ/NJ
(Release ID: 2224540) Visitor Counter : 84
Read this release in: Urdu , ही