Prime Consultancy

AUTO & AUTO COMPONENTS

PLI SCHEME FOR AUTO & AUTO COMPONENTS

Operative Period:

  • The scheme is active from FY 2022-23 to FY 2027-28, with the first incentive disbursement year being FY 2024-25.

Eligibility Criteria:

  • Champion OEMs and New Non-Automotive Investor Companies:
    • Companies engaged in automotive manufacturing with significant investments in advanced technologies.
  • Component Champions and New Non-Automotive Component Investor Companies:
    • Manufacturers producing high-value and high-tech components, including those for electric vehicles (EVs) and hydrogen fuel cell vehicles.

Incentives:

  • Champion OEMs and New Non-Automotive Investor Companies:
    • Incentives range from 13% to 16% of determined sales value, based on sales thresholds.
    • An additional 2% incentive is available for achieving a cumulative determined sales value of ₹10,000 crore over five years.

Component Champions and New Non-Automotive Component Investor Companies:

  • Incentives range from 8% to 11% of determined sales value, with specific percentages tied to sales brackets.
  • An extra 2% incentive is offered for cumulative determined sales of ₹1,250 crore over five years.
  • Components related to battery electric vehicles and hydrogen fuel cell vehicles are eligible for an additional 5% incentive.

Important Notes:

  • Investments made post April 1, 2022, are eligible for incentives.
  • Companies must comply with environmental, safety, and quality standards.

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