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Production Linked Incentive (PLI) Scheme For Automobile Industry

Production Linked Incentive (PLI) Scheme For Automobile Industry:

Union Cabinet has approved the Production Linked Incentive (PLI) Scheme for Automobile Industry.

  • The PLI scheme for the auto sector will incentivize high value Advanced Automotive Technology vehicles and products.
  • The incentive structure will encourage industry to make fresh investments for indigenous global supply chain of Advanced Automotive Technology products.
  • It is estimated that over a period of five years, the PLI Scheme for Automobile and Auto Components Industry will lead to fresh investment of over ₹42,500 crore, incremental production of over ₹2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs.
  • The PLI Scheme for auto sector is open to existing automotive companies as well as new investors who are currently not in automobile or auto component manufacturing business.
  • The scheme has two components viz Champion OEM Incentive Scheme and Component Champion Incentive Scheme.
  • The Champion OEM Incentive scheme is a ‘sales value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments.
  • The Component Champion Incentive scheme is a ‘sales value linked’ scheme, applicable on Advanced Automotive Technology components of vehicles, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, Vehicle aggregates of 2-Wheelers, 3-Wheelers, passenger vehicles, commercial vehicles and tractors etc.

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