Production Linked Incentive (PLI) Scheme for Automobile & Auto Components - Ministry of Heavy Industries | Current Affairs | Vision IAS

Upgrade to Premium Today

Start Now
Vision
MENU
Home
Daily Updates
Weekly & Monthly
Periodic Reviews
Annual Coverage

Periodically curated articles and updates on national and international developments relevant for UPSC Civil Services Examination.

Test Your Knowledge
Quick Links

High-quality MCQs and Mains Answer Writing to sharpen skills and reinforce learning every day.

Daily & Weekly
Special Series
Focused Content

Watch explainer and thematic concept-building videos under initiatives like Deep Dive, Master Classes, etc., on important UPSC topics.

Archives
Revision Documents
Special Resources

A searchable repository of past resources — News Today, Monthly Magazine, PT 365, Mains 365, etc. — for easy revision.

GS Prelims & Mains
Optional Courses
UPSC Mains
UPSC Prelims
Current Affairs Programs
Prelims Test Series
Mains Test Series
Yearly Tests
Mentoring & Interview

A comprehensive overview of all our flagship, foundation, and advanced courses for UPSC preparation.

Test Your Knowledge
Downloadable Resources

A short, intensive, and exam-focused programme, insights from the Economic Survey, Union Budget, and UPSC current affairs.

Register

Need help? 8468022022

VisionIAS Logo
ESC
Vision

Production Linked Incentive (PLI) Scheme for Automobile & Auto Components

Updated: 16 Oct 2025
Ministry: Ministry of Heavy Industries
Beneficiary: Miscellaneous

Overview

The Production Linked Incentive (PLI) Scheme for Automobile and Auto Components (2021–28) is a Central Sector Scheme aimed at boosting India’s share in global automotive trade by incentivizing investments in Advanced Automotive Technology (AAT) products, enhancing economies of scale, and strengthening the domestic supply chain.

Quick facts

  • Purpose: To increase India's share in global automotive trade
  • Type: Central Sector Scheme
  • Coverage: Both existing and new manufacturing companies
  • Tenure: From 2021 till FY 2027-28

Objectives

  • Overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of Advanced Automotive Products Technologies (AAT) products. 

Salient features

  • Background: India is projected to be world's third-largest automotive market in terms of volume by 2026.
  • Incentive
    • Incentive upto 18% for fresh investments in indigenous supply chain of Advanced Automotive Technology (AAT)
    • ₹6,485 crore would be total incentive per entire Group Company (ies).
    • Phased Manufacturing Programme similar to FAME-II Scheme is followed.
    • 2019-20 is the Base Year for calculation of Eligible sales for incentive.
    • Incentive is available for five consecutive financial years, beginning 2023-24 until FY 2027-28 (earlier till FY2026-27).
  • Conditions for incentive
  • There are two components in this scheme: 

Champion OEM (Original Equipement Manufacturer) Incentive scheme

  • Applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments.

Component Champion Incentive scheme

  • Applicable on AAT components of vehicles, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, etc. 
  • Eligibility: Both existing and new manufacturing companies fulfilling the revenue (from automotive and/or auto component manufacturing) and investment (Global Investment of Company or its Group* Company(ies) in fixed assets) criteria.

Components

Revenue

Investment

Auto OEM

Minimum ₹ 10,000 crore             

₹ 3,000 crore

Auto-Component

Minimum ₹ 500 crore

₹150 crore

  • Effect of eligibility under FAME-II: Incentive payable under this scheme to electric vehicle (EV) manufacturers will be independent of/in addition to the incentives given under FAME-II scheme.
  • Project Management Agency (PMA): IFCI Limited (IFCI), a Non-Banking Finance Company in the public sector.