PLI Scheme for Automobile & Auto Components — ₹6,485Cr Incentives

The Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry is a flagship initiative by the Ministry of Heavy Industries, Government of India. Its core objective is to boost domestic manufacturing of advanced automotive technology products by providing financial incentives to eligible manufacturers. The scheme aims to overcome historical cost disadvantages faced by Indian manufacturers and encourage economies of scale, positioning India as a competitive global manufacturing hub.

Beyond financial support, the scheme is expected to attract significant investment, strengthen the automotive value chain, and create jobs. It focuses on advanced technologies, including electric vehicles (EVs) and hydrogen fuel cell vehicles. The scheme has two components: Champion OEM Incentive Scheme for original equipment manufacturers and Component Champion Incentive Scheme for auto component makers. Each component has tailored incentive rates and eligibility criteria to ensure broad industry impact.

• Financial incentives up to ₹6,485 crore per group
• Total scheme outlay of ₹25,938 crore
• Focus on Advanced Automotive Technology, EVs, and Hydrogen Fuel Cell Vehicles
• Scheme tenure till FY2027-28
• Incentives based on incremental sales
• Minimum 50% domestic value addition required

To apply, you must be a company registered in India and meet all eligibility criteria based on audited financial statements as on 31 March 2021. For existing automotive companies, the minimum global revenue is ₹10,000 crore for OEMs or ₹500 crore for component manufacturers. Minimum global investment in fixed assets is ₹3,000 crore for OEMs or ₹150 crore for component manufacturers. New non-automotive investor companies must have a minimum global net worth of ₹1,000 crore, submit a clear business plan for investment in India, and have 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 applicants must manufacture advanced automotive technology vehicles, ensure at least 50% domestic value addition, obtain product pre-approval, achieve minimum sales of ₹125 crore in the first year, and maintain 10% year-on-year sales growth. Component Champion applicants must meet similar criteria with a minimum sales threshold of ₹25 crore in the first year.

PLI Scheme for Automobile & Auto Components — ₹6,485Cr Incentives is open to startups at any stage. It is open to startups registered anywhere in India.

PLI Scheme for Automobile & Auto Components — ₹6,485Cr Incentives accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

The scheme offers substantial financial incentives based on incremental sales (Determined Sales Value) of eligible products. The total outlay is ₹25,938 crore, with a maximum incentive of ₹6,485 crore for an entire group of companies. Incentive rates range from 8% to 16% depending on the scheme component and sales value, with additional incentives for cumulative sales exceeding thresholds and for products such as Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles/components. Support is provided for five consecutive financial years, from FY2023-24 to FY2027-28, to boost domestic manufacturing, promote investment, and enhance capabilities in advanced automotive technologies.

PLI Scheme for Automobile & Auto Components — ₹6,485Cr Incentives is offered by Ministry of Heavy Industries, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

Applications undergo rigorous evaluation for eligibility and completeness by the nodal agency. After initial scrutiny of submitted documents and details, an acknowledgment is issued. Final approval is granted only upon strict compliance with all scheme conditions and criteria. The evaluation assesses financial health, investment plans, product strategy, and the ability to meet domestic value addition and sales growth targets. Approved applicants then submit annual incentive claims for disbursement.

Before you apply to PLI Scheme for Automobile & Auto Components — ₹6,485Cr Incentives, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

PLI Scheme for Automobile & Auto Components — ₹6,485Cr Incentives is best suited for startups in India seeking non-dilutive funding of ₹500Cr – ₹6485Cr. If that describes your startup, review the eligibility criteria above before applying.