PLI Scheme for Automobile and Auto components

The government has introduced the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry for Enhancing India’s Manufacturing Capabilities for Advanced Automotive Products. This scheme proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology products and attract investments in the automotive manufacturing value chain.

Quantum/ size of overall fund (only for funding):

Rupees 25,938 crore for a period of 5 years (FY2022-23 to FY2026-27)

Benefits:

• The PLI scheme for the auto sector will incentivize high-value Advanced Automotive Technology vehicles and products.

• The PLI Scheme for the auto sector envisages overcoming the cost disabilities to the industry for manufacturing of Advanced Automotive Technology products in India.

• The incentive structure will encourage the industry to make fresh investments in indigenous supply chain deep localization of Advanced Automotive Technology products.