AI SummaryProduction Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry offers financial incentives to boost domestic manufacturing of Advanced Automotive Technology products and attract investment into the wider automotive value chain. Ministry of Heavy Industries runs this scheme under a total outlay of ₹25,938 crore, and companies can still apply through the official portal at pliauto.in.
As per the latest update for 2026, the scheme has drawn ₹44,326 crore in investment and created close to 67,820 jobs by March 2026. A new gazette notification dated 13 January 2026 has also laid down the performance criteria for Battery Electric Vehicles under the scheme.
Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry - Introduction
Ministry of Heavy Industries, Government of India, launched the PLI scheme for Automobile and Auto Components Industry to encourage local manufacturing of advanced automotive technology products. By giving financial incentives to both automobile and auto component makers, the scheme helps overcome cost disabilities, build economies of scale, create jobs and develop a strong supply chain.
The scheme works through two main parts:
- Champion OEM Incentive Scheme, which is a sales value linked scheme that applies to Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles across all segments.
- Component Champion Incentive Scheme, which covers eligible Advanced Automotive Technology components notified by the Ministry.
Incentives apply to the Determined Sales Value for five consecutive financial years, starting from financial year 2023-2024 through 2027-2028.
Key Information
| Scheme Name | Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry |
|---|---|
| Level | Central |
| Scheme For | Infra |
| Beneficiary States | All |
| Category | Business and Entrepreneurship |
| Target Beneficiaries | Business Entity |
| Sub Category | Credit Linked Subsidy |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Ministry | Ministry of Heavy Industries |
| Nodal Department | Department of Heavy Industry |
| Open Date | 2021-09-23 |
Benefits
The government has set aside a total scheme outlay of ₹25,938 crore, with the total incentive capped at ₹6,485 crore per group of companies. Benefits are paid as a percentage of incremental sales value achieved over the base year.
- Under the Champion OEM Incentive Scheme, incentive rates range from 13% to 16% based on incremental sales volume, with an extra 2% incentive for total sales above ₹10,000 crore. This applies to Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles.
- Under the Component Champion Incentive Scheme, incentive rates range from 8% to 11% based on sales, with an extra 2% incentive for total sales above ₹1,250 crore and a further 5% incentive for EV and Hydrogen components.
Eligibility
Applicants must be businesses registered in India and meet specific financial criteria based on audited data from March 31, 2021.
Existing Automotive Companies
OEMs must have a minimum global revenue of ₹10,000 crore and global investment in fixed assets of ₹3,000 crore. Component makers must have a minimum global revenue of ₹500 crore and global investment in fixed assets of ₹150 crore.
New Non-Automotive Investors
New investors must have a minimum global net worth of ₹1,000 crore, submit a complete business plan for investment in India, and must not have had revenue from automobile or component manufacturing as of March 31, 2021.
General Requirements
All applicants must meet total domestic investment milestones starting from April 1, 2021, keep a minimum of 50% domestic value addition, and get product pre-approval from a designated testing agency.
Application Process
STEP 1 - Go to the official portal at pliauto.in and log in using the corporate identification number (CIN) as the user ID.
STEP 2 - Download and fill the official application form and submit it to the nodal agency before the deadline.
STEP 3 - After the initial scrutiny and verification of eligibility, an acknowledgement is issued.
STEP 4 - Final approval is granted based on compliance with all scheme conditions.
STEP 5 - Once approved, incentive claims are submitted on an annual basis for payment.
Documents
Documentation required includes:
- Certificate of Incorporation, Memorandum and Articles of Association, PAN card, Import Export Code and GST registration certificates.
- Board of Directors authorization letter, CIBIL report, latest shareholding pattern and profiles of directors.
- Self-certification on global revenue, investment and net worth, annual reports for the previous three financial years, project report, business plan, proof of application fee payment and integrity undertaking.
References
- Scheme Guidelines
- Amendment Notification dated 13 January 2026
- Official PLI Auto Website
- PLI Auto page on Ministry of Heavy Industries
FAQ's
What is the primary objective of this scheme?
The scheme is designed to promote domestic manufacturing of advanced automotive technology products and drive significant investment into the Indian automotive sector.
Who is responsible for the implementation of the scheme?
Ministry of Heavy Industries manages the implementation of this scheme.
What are the eligibility thresholds for new manufacturers?
New non-automotive investors must have a minimum global net worth of ₹1,000 crore and provide a clear business plan for their Indian operations.
How are incentives calculated?
Incentives are calculated as a percentage of incremental sales value achieved over the determined base year.
What is the mandatory level of domestic value addition?
Applicants are required to maintain a minimum of 50% domestic value addition on their manufactured products.
Does this scheme cover electric vehicles?
Yes, the scheme specifically covers Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles.