Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry (2026) – Financial Incentives for Advanced Automotive Manufacturing

At a glance

About the scheme

The Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry, launched by the Ministry of Heavy Industries, aims to boost domestic manufacturing of advanced automotive technology products by providing financial incentives to automobile and auto component manufacturers. It promotes investment, enhances manufacturing capabilities, strengthens the automotive value chain, and aims to generate employment.

Benefits

• Financial incentive based on incremental sales (Determined Sales Value) of eligible products.
• Total scheme outlay: ₹25,938 crore.
• Total incentive per entire Group company(ies) capped at ₹6,485 crore.
• Champion OEM Incentive Scheme: incentive rates 13% (up to ₹2,000 crore), 14% (₹2,000–₹3,000 crore), 15% (₹3,000–₹4,000 crore), 16% (above ₹4,000 crore); additional 2% on cumulative sales exceeding ₹10,000 crore; applicable to Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles.
• Component Champion Incentive Scheme: incentive rates 8% (up to ₹250 crore), 9% (₹250–₹500 crore), 10% (₹500–₹750 crore), 11% (above ₹750 crore); additional 2% on cumulative sales exceeding ₹1,250 crore; additional 5% for EV and Hydrogen components.

Who can apply (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.
• Existing automotive companies: OEM must have minimum global revenue of ₹10,000 crore and global investment in fixed assets of ₹3,000 crore; Component manufacturers must have minimum global revenue of ₹500 crore and global investment in fixed assets of ₹150 crore.
• New non‑automotive investor companies must have minimum global net worth of ₹1,000 crore, submit a clear business plan for investment in India, generate revenue from advanced automotive products, and have no revenue from automobile or component manufacturing as on 31 March 2021.
• The applicant must achieve cumulative domestic investment targets starting from 1 April 2021 and meet yearly investment milestones.
• Champion OEM: must manufacture advanced automotive technology vehicles, ensure minimum 50% domestic value addition, obtain product pre‑approval from the testing agency, achieve minimum sales threshold of ₹125 crore in the first year, and achieve 10% year‑on‑year growth in sales.
• Component Champion: 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 achieve 10% year‑on‑year growth.

Documents required

• Certificate of Incorporation (Issued by ROC)
• Memorandum & Articles of Association (Submitted to ROC)
• PAN Card
• Import Export Code (IEC) Registration Certificate
• Letter of Authorization by Board of Directors or Managing Director or Equivalent (incl. subsidiary(ies))
• Certificate from the Company Secretary of the Applicant / Managing Director for Credit History (incl. subsidiary(ies))
• CIBIL Report of the Company (incl. subsidiary(ies))
• Business Profile/ Corporate Presentation of the Applicant (incl. subsidiary(ies))
• GST Registration Certificate (incl. subsidiary(ies))
• Shareholding Pattern (Latest submitted with ROC and certified by Company Secretary of the company or, in case the applicant does not have any Company Secretary', by the Managing Director) (incl. subsidiary(ies))
• Profile of Directors
• Self-Certification on EAMC - Global group revenue from automotive and/or auto component manufacturing and Global Investment in fixed assets (gross block), > NNIC - Global net worth, including break-up details, especially for major/ indian entities. Major products considered shall also be mentioned.
• Annual Report of Holding Company
• Self-Certification on Revenue/ Investment/ Net worth from each of the Group Companies whose credentials have been considered
• Annual Report of Applicant for 2018-19
• Annual Report of Applicant for 2019-20
• Annual Report of Applicant for 2020-21
• Financial Details of Subsidiary(ies)
• Annual Report of Subsidiary(ies) for 2018-19
• Annual Report of Subsidiary(ies) for 2019-20
• Annual Report of Subsidiary(ies) for 2020-21
• Self-Certificate mentioning Baseline Eligible Sales Value of Eligible products covered under the List of Advanced automotive technology products (Vehicles and Components) as per clause 15 of the scheme guidelines - for Financial Year 2019-20 -for applicant & subsidiary(ies).
• Project Report/ Business Plan (incl. for Subsidiary(ies))
• Application Fee Payment Proof
• Regulatory Treatment: a. Provide information on Licenses, permits and thirdparty approvals necessary to execute the project as per format attached here with b. Proposed process and timelines for obtaining clearances Undertaking for consent of audit/ verification (incl. Subsidiary(ies)) Integrity Undertaking (Format A)

How to apply

1. 1Submit the online application through the official portal pliauto.in, logging in with your CIN as user ID.
2. 2Ensure the application is submitted before the specified deadline.
3. 3The application will be evaluated for eligibility and completeness.
4. 4An acknowledgement will be issued after initial scrutiny.
5. 5Final approval will be granted based on compliance with scheme conditions.
6. 6Incentive claims will be submitted annually for disbursement.

Frequently asked questions