PLI Scheme for Automobile and Auto Components — 8% to 16% Incentives — Frequently Asked Questions

Two broad groups can apply. The first is companies that already manufacture automotive vehicles or auto components in India or globally and can meet the scheme's global revenue and fixed asset investment thresholds. The second is new non-automotive investor companies that meet the net worth requirement and commit to a new domestic investment in India over a five-year period. Both groups must continue to meet the cumulative new domestic investment conditions each year.

Nothing is paid as a fixed lump sum — the incentive is calculated as a share of your determined sales value. Champion OEMs and new non-automotive OEM investors get 13% to 16%, and can earn an extra 2% if cumulative determined sales touch ₹10,000 crore within five years. Component Champions and new non-automotive component investors get 8% to 11%, with an extra 2% on reaching ₹1,250 crore in cumulative determined sales over five years. Components made for Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles attract a further 5%.

No. The scheme runs on a rolling basis and stays open, so a company can apply through the official portal whenever it is ready. Once an application is filed, the Ministry of Heavy Industries is expected to finalise it within 60 days from the date of submission, or from the date it receives any clarifications it requested.

Existing auto OEMs need minimum global group revenue of ₹10,000 crore from automotive and/or auto component manufacturing, along with global group investment in fixed assets (gross block) of at least ₹3,000 crore. Existing auto component manufacturers need minimum global group revenue of ₹500 crore and global group fixed asset investment (gross block) of at least ₹150 crore.

A new non-automotive investor company must show a minimum global net worth of ₹1,000 crore, based on audited financial statements as on March 31, 2021. It must also commit to new domestic investment in India over a five-year period, as per the conditions laid down under the scheme.

The scheme has two components. The Champion OEM Incentive Scheme is for manufacturers of Advanced Automotive Technology vehicles, including Battery Electric and Hydrogen Fuel Cell vehicles across all segments. The Component Champion Incentive Scheme is for auto component manufacturers that can achieve global scale in Advanced Automotive Technology components.

It is focused on Advanced Automotive Technology products. On the vehicle side, the Champion OEM track covers Advanced Automotive Technology vehicles, including Battery Electric and Hydrogen Fuel Cell vehicles in all segments. On the supply side, the Component Champion track covers auto component makers working at global scale in Advanced Automotive Technology components, and components for Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles receive an additional 5% incentive.

No. This is a production-linked subsidy, not an equity investment. Incentives are paid as a percentage of your determined sales value, and the scheme does not involve the government taking a stake in your business.

Applications are submitted online through the official portal at https://pliauto.in/. You sign in using your login credentials, fill in the application form and attach the financial and supporting documents specified in the form and the scheme guidelines. A non-refundable application fee is payable for each application. On successful submission, the Project Management Agency issues a unique Application ID that you use for all future references under the scheme.

The Project Management Agency screens and evaluates the application against the eligibility criteria, covering your financial standing, investment commitments and business plan for Advanced Automotive Technology manufacturing. It then recommends suitable applications to the Ministry of Heavy Industries, which takes the final decision and may prefer applicants that commit to front-loading their investment, as assessed by the Net Present Value of the proposed investment. Approval is finalised within 60 days, and a formal approval letter is issued within 5 working days thereafter.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for PLI Scheme for Automobile and Auto Components — 8% to 16% Incentives, though having it can strengthen your application and unlock other benefits.

PLI Scheme for Automobile and Auto Components — 8% to 16% Incentives is offered by Ministry of Heavy Industries, a government body. It is provided as non-dilutive funding.