In a significant move to boost the automotive sector, the Ministry of Heavy Industries has rolled out the Production Linked Incentive (PLI) Scheme specifically targeting the Automobile and Auto Component Industry, referred to as the PLI-Auto Scheme. This initiative is set to invigorate the industry by offering financial incentives, with the fiscal year 2024-25 marking the first disbursement phase.
Unpacking the PLI-Auto Scheme
The PLI-Auto Scheme is designed to enhance manufacturing capabilities and competitiveness within the automobile sector. It focuses on two primary categories: Champion OEM (Original Equipment Manufacturer) and Component Champion. These categories are detailed in the incentive slab at Annexure-I, which outlines the financial benefits for eligible participants based on their performance and investment in the sector.
Strategic Manufacturing Locations in Gujarat
The state of Gujarat emerges as a pivotal player in this initiative, boasting 10 approved applicants operating across 12 manufacturing locations. This strategic concentration of manufacturing prowess is expected to significantly bolster the region’s industrial landscape. The specifics of these manufacturing sites are provided in Annexure-II, highlighting Gujarat’s critical role in the national automotive ecosystem.
Extension of the Scheme’s Tenure
Originally set for a shorter duration, the tenure of the PLI-Auto Scheme has been extended by one year through Gazette Notifications no. SO 5486(E) & SO 5487(E), dated December 29, 2023. This extension ensures that FY 2024-25 becomes the inaugural year for incentive disbursement, providing a longer runway for manufacturers to capitalize on the scheme and align their production schedules accordingly.
Official Announcement in Rajya Sabha
The Minister of State for Heavy Industries and Steel, Bhupathi Raju Srinivasa Varma, formally announced these developments in a written reply presented in the Rajya Sabha today. His statement underscores the government’s commitment to revitalizing the automobile and auto components sector through strategic financial incentives and support.
A Step Towards Industrial Growth
The PLI-Auto Scheme represents a significant step towards fostering industrial growth, enhancing the quality and scale of manufacturing in India. By incentivizing high-performance manufacturers, the scheme aims to position India as a global hub for automobile and auto component production. The focus on Gujarat, with its robust infrastructure and industrial base, is a testament to the region’s potential to lead this transformative journey.
Looking Ahead
As the first year of incentive disbursement approaches, all eyes will be on the participating manufacturers and their contributions to the sector. The success of the PLI-Auto Scheme could set a precedent for similar initiatives across other industries, driving a new era of industrial innovation and economic growth in India.
In conclusion, the PLI-Auto Scheme’s strategic implementation and the extension of its tenure mark a significant milestone in India’s industrial policy. With Gujarat at the forefront, the scheme is poised to drive substantial advancements in the automobile and auto component industry, fostering a competitive and robust manufacturing ecosystem.
ANNEXURE-I
Table 1: Incentive Slabs for Champion OEM and New Non-Automotive (OEM) Investor Company
| Determined Sales Value (in ₹ Crore) | Incentives(%age of Determined Sales Value) |
| <= 2,000 | 13% |
| > 2,000 to 3,000 | 14% |
| > 3,000 to 4,000 | 15% |
| > 4,000 | 16% |
| Cumulative Determined Sales Value of ₹10,000 Crores over 5 years. | Additional 2% |
Table 2: Incentive slab for Component Champion and New Non-Automotive Component) Investor company
| Determined Sales Value (in ₹ Crore) | Incentives(%age of Determined Sales Value) |
| <= 250 | 8%* |
| > 250 to 500 | 9%* |
| > 500 to 750 | 10%* |
| > 750 | 11%* |
| Cumulative Determined Sales Value of ₹1,250 Crores over 5 years. | Additional 2% |
| Battery Electric vehicles & Hydrogen fuel cell vehicles components. | Additional 5% |
*Multiplied by a factor of 0.9 in the fifth year for eligible sales relating to Internal Combustion Engine (ICE) vehicle components.
ANNEXURE-II
| Name of the Applicant Company | Name of Manufacturing Location | City/ District | |
| 1 | Aisin Automotive Haryana Private Ltd | Aisin Automotive Haryana Private Ltd | AHMEDABAD |
| 2 | Aisin Automotive Haryana Private Ltd | Aisin Automotive Haryana Private Ltd | AHMEDABAD |
| 3 | Asahi India Glass Ltd | Asahi India Glass Ltd | PATAN |
| 4 | Lumax Auto Technologies Limited | LumaxMannoh Allied Technologies Limited | SURENDRA NAGAR |
| 5 | Minda Corporation Limited | MindaInfac Private Limited | SURENDRA NAGAR |
| 6 | Mitsubishi Electric Automotive India Private Limited | Mitsubishi Electric Automotive India Private Limited | AHMEDABAD |
| 7 | Rockman Industries Limited | Rockman Industries Limited | VADODARA |
| 8 | Suzuki Motor Gujarat Private Limited | Suzuki Motor Gujarat Private Limited | AHMEDABAD |
| 9 | Tata Motors Limited | Tata Motors Passenger Vehicles Limited | AHMEDABAD |
| 10 | Tata Motors Limited | Tata Passenger Electric Mobility Limited | AHMEDABAD |
| 11 | Valeo India Private Limited | Valeo India Private Limited | AHMEDABAD |
| 12 | Yazaki India Private Limited | Yazaki India Private Limited | AHMEDABAD |
