Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry
Ministry of Heavy Industries · Central government
The scheme funds automobile and auto-component manufacturers for advanced automotive technology products.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- ₹5,00,00,00,000 – ₹64,85,00,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 5 years
About this scheme
The Production Linked Incentive (PLI) Scheme for the Automobile and Auto Components Industry, administered by the Ministry of Heavy Industries, Government of India, aims to strengthen domestic manufacturing. It offers financial incentives to eligible manufacturers of advanced automotive technology products. The scheme addresses cost disadvantages historically faced by Indian producers and encourages economies of scale, positioning India as a competitive global manufacturing destination.
Beyond direct financial support, the scheme seeks to attract investment, improve the manufacturing ecosystem, and reinforce the automotive value chain. It also supports job creation and the development of a self-reliant supply network for advanced technologies, including electric vehicles (EVs) and hydrogen fuel cell vehicles. The PLI scheme operates through two distinct components: the Champion OEM Incentive Scheme for original equipment manufacturers and the Component Champion Incentive Scheme for auto component producers. Each component features specific incentive rates and eligibility conditions to achieve broad industry coverage.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Revenue band
- From ₹5,00,00,00,000
- Where the business may be based
- Not restricted
- Applicant must be a company registered in India. - Applicant must meet all eligibility criteria based on audited financial statements as on 31 March 2021. - For existing Automotive Companies: Minimum global revenue of ₹10,000 crore for OEMs or ₹500 crore for Component manufacturers. - For existing Automotive Companies: Minimum global investment in fixed assets of ₹3,000 crore for OEMs or ₹150 crore for Component manufacturers. - For New Non-Automotive Investor Companies: Minimum global net worth of ₹1,000 crore. - New Non-Automotive Investor Companies must submit a clear business plan for investment in India and generate revenue from advanced automotive products, with no prior revenue from automobile or component manufacturing as on 31 March 2021. - All applicants must achieve cumulative domestic investment targets starting from 1 April 2021 and meet yearly investment milestones. - Champion OEM Component Specific Eligibility: Must manufacture advanced automotive technology vehicles, ensure minimum 50% domestic value addition, obtain product pre-approval, achieve minimum sales threshold of ₹125 crore in the first year, and 10% year-on-year growth in sales. - Component Champion Specific Eligibility: Must manufacture advanced automotive components, ensure minimum 50% domestic value addition, obtain product pre-approval, achieve minimum sales threshold of ₹25 crore in the first year, and 10% year-on-year growth in sales.
How to apply
- Applications may be submitted online via the official portal at https://pliauto.in/login, using your CIN as the user ID for login. - Offline submissions involve furnishing the prescribed application form to the nodal agency, with all particulars filled in accurately and completely. - Submission must occur before the specified deadline, as communicated by the nodal agency. - Applicants must upload all requisite supporting documents—such as audited financial statements, business plans, and investment proofs—on the portal at https://pliauto.in/. - Following initial scrutiny and evaluation for eligibility and completeness, the nodal agency will issue an acknowledgment. - Final approval is contingent upon full compliance with all scheme conditions and criteria set out in the guidelines. - Approved beneficiaries will file annual incentive claims for disbursement, based on their determined sales value and adherence to investment milestones.
How applications are assessed
The nodal agency reviews each application for eligibility and completeness. Once the submitted documents and details pass this initial check, the applicant receives an acknowledgment. Participation in the scheme is confirmed only after the applicant meets every stipulated condition and criterion in full.
The assessment examines the applicant’s financial position, proposed investment, product approach, and capacity to achieve the required domestic value addition and sales growth targets.
Frequently asked questions
What is the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry?
The Ministry of Heavy Industries offers financial incentives to automobile and auto component manufacturers, based on incremental sales and investments, to encourage domestic production of advanced automotive technology products and position India as a global manufacturing hub for such technologies.
What are the two main components of the scheme?
The scheme has two parts: the Champion OEM Incentive Scheme for Original Equipment Manufacturers, and the Component Champion Incentive Scheme for makers of advanced auto components.
What is the maximum incentive available per company?
The total incentive available to an entire group of companies under this scheme is capped at ₹6,485 crore, which ensures equitable distribution while still offering substantial support.
What are the key eligibility criteria for applicants?
Applicants must be companies registered in India with substantial global revenue and fixed asset investments, with specific thresholds for OEMs and component manufacturers and distinct net worth requirements for new non-automotive investors. All applicants must commit to cumulative domestic investment targets and yearly milestones, while Champion OEM and Component Champion applicants must also meet criteria on domestic value addition, product pre-approval, and sales growth.
How long will the incentives be provided?
Incentives under the scheme apply for five consecutive financial years, beginning in FY2023-24 and continuing through FY2027-28.
What is the application process?
Applications are submitted online via the official portal (pliauto.in) using the company's CIN as the user ID, or offline by sending the prescribed form to the nodal agency. After evaluation for eligibility and completeness, approved applicants receive final approval and then file annual incentive claims for disbursement based on performance.
Sectors
- Climate Energy Ev
- Manufacturing Industrial
- Pli
- Automobile
- Auto Components
- Manufacturing
- Advanced Automotive Technology
- Ev
- Hydrogen Fuel Cell
Details last verified on 3 August 2026. Source: the issuer's published information.