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Bajaj Auto Leads Auto PLI Payouts in FY26, Followed by Tata Motors and Ola
Sentiment: NeutralHigh Priority
What Happened?
Bajaj Auto received the highest incentive payout under the PLI scheme for FY26, totaling ₹625.65 crore. Tata Motors and Ola Electric followed with ₹403.18 crore and ₹366.78 crore, respectively.
Key points
- Bajaj Auto received ₹625.65 crore in FY26 under the PLI scheme.
- Tata Motors and Ola Electric received ₹403.18 crore and ₹366.78 crore, respectively.
- Total payouts to five automakers reached nearly ₹2,000 crore in FY26.
- Investments under the scheme exceeded projections at ₹44,326 crore.
- Job creation was only 67,820, far below the target of 148,147.
- Electric vehicle production saw significant growth, with incentivized volumes rising sharply.
Key insights
- The significant gap between investment and job creation highlights the challenges in the automotive sector.
- Increased electric vehicle production could lead to future growth in the sector.
- Compliance with localization norms remains a challenge for manufacturers.
Why it matters
The PLI scheme's performance indicates the challenges in job creation despite high investment in the automotive sector.
Tags
Entities
Bajaj Auto· CompanyTata Motors· CompanyOla Electric· CompanyTVS Motor· CompanyMahindra & Mahindra· CompanyNITI Aayog· OrganizationToyota Kirloskar Auto Parts· Company
Source
Business Standard
