PLI Scheme for Automobile Industry

The Government is planning to extend the PLI Scheme to Automotive industry which shall include Automobiles and auto components. Under this scheme Government has approved financial outlay of USD 7.7 billion over a period of 5 years.


This scheme is being launched with the intent to encourage domestic manufacturing, promotion of exports and import substitution. It shall have four plans:

- Global Sourcing Scheme

- Vehicle Champion Scheme

- Component Champion Scheme

- Production-Linked Incentive Scheme


Under the scheme, the manufacturers are expected to get a cashback between 2% and 12% of the incremental sales revenue and incremental exports revenue. To avail the benefit under the scheme the following criteria is to be met:

- Vehicle manufacturer

o Global group revenue of more than INR 10,000 crore

o Global investment in fixed assets of INR 3,500 crore

o Revenue from outside India should be more than/equal to 1,000 crore

- Component manufacturer

o Global group revenue of more than INR 1,000 crore

o Global investment in fixed assets of INR 350 crore

o Revenue from outside India should be more than/equal to 200 crore


With the introduction of this scheme, it’s one step towards “Atmanirbhar” India.

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