PLISFAACI
Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry
6.1/10The scheme offers financial incentives to boost domestic manufacturing of Advanced Automotive Technology products and attract investments in the automotive manufacturing value chain.
States / UT: All India
Ministry / nodal: Ministry of Heavy Industries
Nodal department: Department Of Heavy Industry
Scheme for: Infra
Scheme profile
DBT (direct benefit transfer): No
Scheme open date: 2021-09-23
Categories: Business & Entrepreneurship
Sub-categories: Credit Linked Subsidy
Target beneficiaries: Business Entity
Tags: Production Linked Incentive, PLI, Automobile Industry, Auto Components, Advanced Automotive Technology, Investment Promotion, Electric Vehicles, Hydrogen Fuel Cell Vehicles
Details
The scheme "Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry" by the Ministry of Heavy Industries, Government of India, aims to boost domestic manufacturing of advanced automotive technology products through providing financial incentives to automobile manufacturers and auto component manufacturers. It promotes investment, enhances manufacturing capabilities, and strengthens the automotive value chain. The scheme focuses on overcoming cost disabilities and creating economies of scale. It also aims to generate employment and develop a robust supply chain. The scheme has two components, namely:
- Champion OEM Incentive Scheme and
- Component Champion Incentive Scheme.
Tenure of the Scheme:
Incentive will be applicable on Determined Sales Value starting from Financial Year 2023-24 for a total of five consecutive financial years i.e. till FY2027-28.
Benefits
- Financial Incentive (General):
- Incentives are provided based on incremental sales (Determined Sales Value) of eligible products
- Total scheme outlay: ₹25,938 crore.- Total Incentive per entire Group company(ies) is capped at: ₹6,485 crore. Champion OEM Incentive Scheme:
- Incentive rates:
- Up to ₹2,000 crore: 13%
- ₹2,000–₹3,000 crore:14%
- ₹3,000–₹4,000 crore: 15%
- Above ₹4,000 crore: 16%
- Additional 2% incentive on cumulative sales exceeding ₹10,000 crore
- Applicable to Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles. Component Champion Incentive Scheme:
- Incentive rates:
- Up to ₹250 crore: 8%
Financial Incentive (General):
- Incentives are provided based on incremental sales (Determined Sales Value) of eligible products.
- Total scheme outlay: ₹25,938 crore.- Total Incentive per entire Group company(ies) is capped at: ₹6,485 crore.
Champion OEM Incentive Scheme:
- Incentive rates:
- Up to ₹2,000 crore: 13%
- ₹2,000–₹3,000 crore:14%
- ₹3,000–₹4,000 crore: 15%
- Above ₹4,000 crore: 16%
- Additional 2% incentive on cumulative sales exceeding ₹10,000 crore.
- Applicable to Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles.
Component Champion Incentive Scheme:
Incentive rates:
Up to ₹250 crore: 8%
₹250–₹500 crore: 9%
₹500–₹750 crore: 10%
Above ₹750 crore: 11%
Additional 2% incentive on cumulative sales exceeding ₹1,250 crore.
Additional 5% incentive for EV and Hydrogen components.
Eligibility
1. General Eligibility:
- The applicant must be a company registered in India.
- The applicant must meet all eligibility criteria based on audited financial statements as on 31 March 2021.
2. Existing Automotive Companies:
- The applicant must have:
- Minimum global revenue:
- OEM → ₹10,000 crore
- Component → ₹500 crore
- The applicant must have global investment in fixed assets:
- OEM → ₹3,000 crore
- Component → ₹150 crore
3. New Non-Automotive Investor Companies:
- The applicant must have minimum global net worth of ₹1,000 crore.
- The applicant must submit a clear business plan for investment in India.
- The applicant must generate revenue from advanced automotive products.
- The applicant must not have any revenue from automobile or component manufacturing as on 31 March 2021.
4. Investment Conditions (All Components):
- The applicant must achieve cumulative domestic investment targets starting from 1 April 2021.
- The applicant must meet yearly investment milestones.
5. Champion OEM Component Specific Eligibility:
- The applicant must manufacture advanced automotive technology vehicles.
- The applicant must ensure minimum 50% domestic value addition.
- The applicant must obtain product pre-approval from the testing agency.
- The applicant must achieve minimum sales threshold of ₹125 crore in first year.
- The applicant must achieve 10% year-on-year growth in sales.
6. Component Champion Specific Eligibility:
- The applicant must manufacture advanced automotive components.
- The applicant must ensure minimum 50% domestic value addition.
- The applicant must obtain product pre-approval.
- The applicant must achieve minimum sales threshold of ₹25 crore in first year.
- The applicant must achieve 10% year-on-year growth.
How useful is this scheme?
A practical look at this scheme for citizens
AI-generated insights showing how useful, accessible, and practical this scheme may be — combining deterministic scoring rules with a public-policy LLM analyst.
- Accessibility5.0
- Financial impact9.5
- Rural utility5.0
- Awareness7.5
- Simplicity2.0
- Inclusivity4.0
What problem does this scheme solve?
The scheme aims to enhance domestic manufacturing in the automotive sector through financial incentives, primarily benefiting established companies.
Key challenges addressed
- Boosting domestic manufacturing
- Attracting investments in advanced automotive technology
Most beneficial for
- Established automotive manufacturers
- Companies investing in electric and hydrogen fuel vehicles
Likely challenges
- High eligibility criteria may exclude smaller businesses
- Complex application process
Practical insights for citizens
The scheme may not be practical for small or new businesses due to stringent eligibility requirements.
Rural challenges
- Limited access to digital infrastructure
- High eligibility barriers for rural businesses
Digital challenges
- Dependence on online application process
- Need for digital literacy
Implementation bottlenecks
- Complex verification process
- Potential delays in approval
Awareness challenges
- Limited outreach to smaller businesses
- Lack of information on eligibility criteria
Application analysis
- Application mode
- Online + Offline
- Documents burden
- Moderate
- Verification complexity
- High
- Office dependency
- Moderate
- DBT dependency
- Low
- CSC support
- Limited
- Estimated citizen effort
- High
Estimated beneficiary reach
Benefit analysis
- Benefit type
- Cash
- Benefit frequency
- Annual based on sales performance
- Benefit practicality
- High for eligible businesses with significant sales.
- Financial meaningfulness
- High due to substantial incentive amounts based on sales.
- Long-term impact
- Positive impact on domestic manufacturing and employment in the automotive sector.
Plain-language guidance
This scheme provides financial incentives to boost manufacturing in the automotive industry. It is mainly for established companies that meet specific criteria.
- Who should apply
- Established automotive manufacturers and new investors in advanced automotive technology.
- Who may struggle
- Small businesses and first-time applicants due to complex eligibility and application processes.
- Best application route
- Apply via the official online portal or through a nodal agency.
This intelligence section is generated by an AI policy analyst combined with rule-based scoring. Scores and narrative are estimates derived from the publicly available scheme information shown on this page; actual experience may vary by state, district, and department. Always confirm details on the official portal before you apply.
Application Process
Online
- Online application can be submitted through the official website (Please login with your CIN as user ID).
Offline
Step 1: The applicant must submit the application form through the prescribed process to the nodal agency.
Step 2: The applicant must ensure submission before the specified deadline.
Step 3: The application will be evaluated for eligibility and completeness.
Step 4: Acknowledgement will be issued after initial scrutiny.
Step 5: Final approval will be granted based on compliance with scheme conditions.
Step 6: Incentive claims will be submitted annually for disbursement.
Note: Documents should be uploaded on the portal: pliauto.in
Clarifications
Additional points from the scheme information published on myScheme (not legal advice).
- What is the objective of the scheme?
The scheme aims to promote domestic manufacturing of advanced automotive technology products and attract investments in the sector.
- Who implements the scheme?
The scheme is implemented by the Ministry of Heavy Industries.
- What are the main components of the scheme?
The scheme consists of Champion OEM Incentive Scheme and Component Champion Incentive Scheme.
- Who can apply under this scheme?
The applicant must be an automotive company or a new non-automotive investor meeting eligibility criteria.
- What is the total outlay of the scheme?
The total outlay of the scheme is ₹25,938 crore.
- What is the duration of the scheme?
The scheme is valid for 5 years up to FY ending 31 March 2027.
- What is the minimum sales threshold for OEM component?
The applicant must achieve ₹125 crore in the first year.
- What is the miIs domestic value addition required?nimum sales threshold for component manufacturers?
The applicant must achieve ₹25 crore in the first year.
- Is domestic value addition required?
The applicant must ensure minimum 50% domestic value addition.
- Are electric vehicles covered under this scheme?
The scheme covers Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles.
- Can new investors apply?
New non-automotive investors can apply if they meet the required criteria.
- What happens if investment targets are not met?
The applicant will not receive incentives for that year.
- How are incentives calculated?
Incentives are calculated based on incremental sales value over the base year.
Official links
References
- Guidelines
- https://pliauto.in/docs/guidelines/Notification.pdf
- Amendment
- https://pliauto.in/docs/guidelines/269327%20SO%20188(E)%2013-01-2026%20Amendment%20Notification%20Performance%20Criteria%20for%20EVs.pdf
- Official Website
- https://pliauto.in/
Apply
Apply nowOpens the official application or programme portal in a new tab. If in doubt, confirm details on the ministry site.
Frequently asked questions
- What is the purpose of Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry?
- Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry is a government welfare initiative designed to support Infra, Business Entity through benefits related to Business & Entrepreneurship, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.
- Who can apply for Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry?
- Eligibility for Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.
- What benefits are offered under Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry?
- Benefits under Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.
- Which department manages Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry?
- Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry is managed by Department Of Heavy Industry and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.
- Can users apply online for Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry?
- Yes, eligible applicants may be able to apply online for Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry through official government portals, authorised service centres, or digital application systems depending on the implementation process.
- Is Aadhaar mandatory for Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry?
- Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.
- Where can users apply for Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry?
- Applications for Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.
- What documents may be required for Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry?
- Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.
- Is Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry a central government scheme?
- Yes, Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry is a central government welfare initiative that may be implemented across multiple states through authorised departments and agencies.
- Does Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry provide business loan or startup assistance?
- Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry may support entrepreneurs, startups, self-employed individuals, MSMEs, or small businesses through financial assistance, subsidies, credit support, or training initiatives.
- Is collateral required under Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry?
- Collateral requirements may vary depending on the loan amount, implementing agency, financial institution, and government subsidy structure.
- Can CSC centres help users apply for Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry?
- Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.
- How can users check the latest updates for Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry?
- Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
- Are there deadlines for applying to Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry?
- Some schemes may operate through fixed application windows, annual registration cycles, or department-specific deadlines depending on scheme implementation policies.
- Can beneficiaries track application status for Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry?
- Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.
- Where can users get help for Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry in All India?
- Users in All India may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.
- Which nearby public services may help with Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry applications?
- Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.