New Delhi, Jan. 7 -- The Ministry of Heavy Industries (MHI) has proposed doubling the allocation for the Production Linked Incentive (PLI) scheme for automobiles and auto components to Rs 5,800 crore in the upcoming financial year, reflecting a shift in the scheme's focus from capacity creation to higher production output.

The allocation for the scheme in FY 2025-26 stood at Rs 2,818.85 crore.

Scheme Focus and Objectives

Launched in 2021, the PLI scheme for the automobile sector aims to boost domestic manufacturing of advanced automotive products and attract investments across the automotive value chain.

The scheme provides incentives only for products achieving a minimum domestic value addition (DVA) of 50 per cent, with a specific e...