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
|
2,242
|
|
4
|
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:
- 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.
- 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).
- 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.
- 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.
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TPJ/NJ
(Release ID: 2224540)
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