Production Linked Incentive Scheme For Automobile And Auto Component Industry
By Ministry of Heavy Industries
Check your eligibility
Sign up and we'll tell you whether your startup qualifies for this grant.
Quick Answer
Financial incentives to boost domestic manufacturing of Advanced Automotive Technology products and attract investments in the automotive manufacturing value chain.
- Funding amount
- Varies
- Funding type
- Subsidy
- Provider
- Ministry of Heavy Industries
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this subsidy
The Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry, approved by the Government of India, aims to significantly enhance India's manufacturing capabilities for Advanced Automotive Products. The scheme offers financial incentives to promote domestic production and attract investments across the entire automotive manufacturing value chain. Its primary objectives include mitigating cost disadvantages, achieving economies of scale, and establishing a robust supply chain specifically for Advanced Automotive Technology products. This initiative is designed to generate employment and facilitate the Automobile Industry's transition towards higher value-added products. The scheme is divided into two main components: the Champion OEM Incentive Scheme, targeting Advanced Automotive Technology vehicles (including Battery Electric and Hydrogen Fuel Cell Vehicles across all segments), and the Component Champion Incentive Scheme, focused on incentivizing auto component manufacturers that can achieve global scale in Advanced Automotive Technology components.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Benefits & Funding
What You Get
The scheme provides substantial financial incentives to approved applicants, calculated as a percentage of their determined sales value. For Champion OEMs and new non-automotive OEM investors, incentives range from 13% to 16% of sales value, with an additional 2% for achieving a cumulative determined sales value of ₹10,000 crore over five years. Component Champions and new non-automotive component investors receive incentives ranging from 8% to 11% of sales value, with an additional 2% for achieving a cumulative determined sales value of ₹1,250 crore over five years. Components for Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles receive an additional 5% incentive. These incentives are designed to overcome cost disabilities, facilitate economies of scale, and encourage investments in Advanced Automotive Technology manufacturing, ultimately supporting regulatory objectives for domestic production.
- Disbursement
- Milestone Based
- Duration
- 61 months
Timelines & Process
Applications
Rolling basis
Selection Process
Applications will undergo a thorough screening and evaluation process by the Project Management Agency (PMA). The PMA is responsible for assessing compliance with all specified eligibility criteria, including financial standing, investment commitments, and business plans related to Advanced Automotive Technology manufacturing. Following this initial assessment, the PMA will formulate appropriate recommendations for approval under the scheme. These recommendations will then be submitted through the proper channels to the Ministry of Heavy Industries (MHI) for their consideration. The MHI will make the final decision on approvals, potentially giving preference to companies that demonstrate a commitment to front-load their investments during the scheme period, as evaluated by the Net Present Value (NPV) of their proposed investment.
Application Process
- 1
Submit Application
Submit application along with financial & supporting documents on the online portal.
You - 2
- 3
- 4
- 5
- 6
How to apply
Four steps from draft to disbursement — one action each.
- 1
Submit on the official portal
Use the official application link and verify all details before final submission.
- 2
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary objective of the PLI Scheme for Automobile and Auto Component Industry?
The scheme aims to enhance India's manufacturing capabilities for Advanced Automotive Products, boost domestic manufacturing, attract investments, overcome cost disabilities, create economies of scale, and build a robust supply chain in Advanced Automotive Technology products.
Who is eligible to apply for this scheme?
Companies with an existing presence in automotive manufacturing in India or globally, and new non-automotive investor companies with a clear business plan to invest in advanced automotive technology manufacturing in India, provided they meet specific revenue, investment, and net worth criteria.
What are the two main components of the scheme?
The two main components are the Champion OEM Incentive Scheme, targeting Advanced Automotive Technology vehicles (including Battery Electric and Hydrogen Fuel Cell Vehicles), and the Component Champion Incentive Scheme, for auto component manufacturers of Advanced Automotive Technology.
What kind of incentives are provided?
Financial incentives are provided as a percentage of the Determined Sales Value, ranging from 8% to 16% depending on the category and sales thresholds, with additional incentives for cumulative sales and Battery Electric/Hydrogen Fuel Cell vehicle components.
What are the key eligibility criteria for existing automotive companies?
Existing Auto OEMs require minimum global group revenue of ₹10,000 crore and global fixed asset investment of ₹3,000 crore. Auto-Component manufacturers require minimum global group revenue of ₹500 crore and global fixed asset investment of ₹150 crore.
What is the application process?
Applications are submitted online through the PMA portal within a 60-day window, along with financial and supporting documents. A non-refundable application fee is required. Upon successful submission, a unique Application ID is issued.
