The Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (PLI-Auto) was approved on September 15, 2021 for enhancing India’s manufacturing capabilities for advanced automotive products including electric vehicles and their components, with a budgetary outlay of INR 25,938 crores. As reported by the approved applicants under the Scheme, investment up to March 31, 2024 is INR 17,896 crores and incremental sale is INR 3,370 crores. The tenure of PLI-Auto Scheme was extended by one year through Gazette Notifications no. SO 5486(E) and SO 5487(E) dated December 29, 2023.
The application window under PLI Auto scheme was closed on January 9, 2022. As per the scheme guideline, there is no provision for another round of selection of firms. Further, two Standard Operating Procedures (SoPs) have been issued, namely, SoP for Domestic Value Addition (DVA) calculation on April 27, 2023 and SoP for Disbursement Claim Incentive on July 25, 2024 to expedite the process.
For PLI-Auto Scheme, FY 2024-25 is the first incentive disbursement year.
The incentive slab under this scheme for Champion OEM and Component Champion is given below:
| Determined Sales Value (in INR Crore) | Incentives (Percentage of Determined Sales Value) |
| <= 2,000 | 13% |
| > 2,000 to 3,000 | 14% |
| > 3,000 to 4,000 | 15% |
| > 4,000 | 16% |
| Cumulative Determined Sales Value of INR 10,000 Crores over 5 years. | Additional 2% |
| (Source: PIB) |
Incentive slab for Component Champion and New Non-Automotive Component Investor company.
| Determined Sales Value (in INR Crore) | Incentives (Percentage of Determined Sales Value) |
| <= 250 | 8% |
| > 250 to 500 | 9% |
| > 500 to 750 | 10% |
| > 750 | 11% |
| Cumulative Determined Sales Value of INR 1,250 Crores over 5 years. | Additional 2% |
| Battery Electric vehicles & Hydrogen fuel cell vehicles components. | Additional 5% |
| (Source: PIB) |
There are 10 approved applicants with 12 manufacturing locations in the state of Gujarat under PLI-Auto Scheme of the Ministry of Heavy Industries namely, Aisin Automotive Haryana Private Ltd., Asahi India Glass Ltd., Lumax Auto Technologies, Minda Corporation, Mitsubishi Electric Automotive India, Rockman Industries, Suzuki Motor Gujarat, Tata Motors, Valeo India and Yazaki India.