Auto-PLI payouts set to reach ₹4,000 crore in FY27; Bajaj Auto receives ₹750 crore

India’s Auto-PLI disbursals are expected to rise to about ₹4,000 crore in FY27, supported by a ₹5,939.87 crore budget allocation. Bajaj Auto says it has received ₹750 crore this fiscal against roughly ₹6,000 crore in incremental sales, with 13 vehicles approved under the scheme.

— Source publishedTue, 4 Aug, 2026, 01:17 IST·First seen Tue, 4 Aug, 2026, 01:27 IST·Source ET Small Business

What happened

India expects to disburse about ₹4,000 crore under Auto-PLI in FY27. Bajaj Auto has received ₹750 crore against roughly ₹6,000 crore of incremental sales, while

Key facts

  • ₹4,000 crore expected Auto-PLI disbursals in FY27
  • ₹750 crore received by Bajaj Auto this fiscal
  • ₹6,000 crore incremental sales claimed by Bajaj Auto
  • 13 Bajaj Auto vehicles approved under Auto-PLI
  • ₹5,939.87 crore FY27 budget allocation
  • ₹2,091.26 crore allocation last fiscal
  • ₹25,938 crore total scheme outlay
  • ₹32,879 crore beneficiary sales estimated
  • ₹1,350.83 crore disbursed to five applicants

Why this matters

The expanding Auto-PLI budget strengthens the case for partnerships or acquisitions that add approved vehicles, localized components and incentive-eligible manufacturing capacity.

What to watch

  • Actual FY27 Auto-PLI disbursal pace versus the projected ₹4,000 crore.
  • Number of approved vehicle models and new beneficiary OEMs, especially EV and two-wheeler makers.
  • Bajaj Auto's quarterly incremental-sales disclosures, margins, capex and EV volume growth after the ₹750 crore receipt.
  • Changes in domestic-value-addition requirements, scheme timelines, audit rules or budget releases.
  • Vehicle retail registrations, dealer inventory days and financing incentives in PLI-eligible categories.
  • Track whether Bajaj Auto deploys incentive-linked cash toward EV launches, premium motorcycles, dealer expansion or export capacity.
  • Expect competing OEMs to accelerate applications for eligible models, localization plans and supplier contracts to secure FY27 payouts.
  • Watch dealers for higher inventory availability and model-specific financing or exchange offers rather than across-the-board list-price cuts.
  • Monitor component suppliers for increased orders in advanced electronics, battery systems, motors, powertrains and locally sourced high-value parts.