Snapshot

Leading Global Automotive Manufacturing Hub.

Indian Auto Component Industry clocks highest-ever turnover of $56 Bn, grows 23% in FY 2021-22.

The growing presence of global automobile Original Equipment Manufacturers (OEMs) in the Indian auto components industry has significantly increased the localization of their components in the country.

The FDI inflow into Indian automotive industry during the period April 2000-December 2022 stood at $34.1 Bn.

100% FDI in the automotive parts industry is allowed under the automatic route.

For further details, please refer FDI Policy

 




 

  • %

    Share in India's GDP

  • Mn

    Employment generated

  • %

    CAGR (over 6 years)

  • $ Bn

    Auto Component exports

The rapidly growing auto market in India is expected to reach $300 Bn by 2026.

Automotive aftermarket segment in India is expected to reach $32 Bn by 2026.

Auto Components industry exports to grow 5X in next 10 years.

Industry Scenario

The $46 Bn (FY21) Auto Components industry in India is expected to grow to $200 Bn by 2026.

Indian Auto Component industry exports, which are currently valued at $13.3 Bn in FY21, are expected to reach $80 Bn by 2026. USA, Germany, UK, Thailand and Italy are the top destinations for exports.

India's auto component industry recorded its highest trade surplus of $700 Mn in a financial year in 2021-22

Aftermarket segment which includes Tyre, battery, brake parts, is expected to reach $32 Bn by 2026 from $9.8 Bn FY20.

Auto components industry grows 34.8% to INR 2.65 lakh Cr in H1 FY23.

The overall Indian auto components industry, which accounts for 2.3% of India's GDP currently, is set to become the 3rd largest globally by 2025.

GROWTH DRIVERS

  • Expanding R&D hub

    8% of the country’s R&D expenditure is in the automotive sector

  • Emerging global sourcing hub

    Proximity to markets such as ASEAN, Europe, Japan and Korea

  • Cost competitive

    Excise duty reduction in vehicles will spur demand

  • Fifth largest vehicles manufacturer in the world

    India expected to be the third largest market by 2026

  • Favorable trade policy

    100% FDI allowed and no restrictions on import-export

  • Atmanirbhar Bharat

    PLI schemes in automobile and auto component sector with financial outlay of INR 25,938 Cr introduced under Atmanirbhar Bharat 3.0

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Production Linked Incentive (PLI) Scheme

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi announced the Production-Linked Incentive (PLI) Scheme in the Automobile and Auto Components sectors. The PLI scheme (outlay of $3.5 Bn) for the automobile sector proposes financial incentives of up to 18% to boost domestic manufacturing of advanced automotive technology products and attract investments in the automotive manufacturing value chain. Incentives are applicable for determined sales of products manufactured in India from April 1, 2022, for a period of five consecutive years. The scheme was closed on 9th January 2022. Recent Developments: 1) Total of 115 companies had filed their application under this scheme. Out of 115, total 85 applicants have been approved under this PLI scheme - 18 applicants for Champion OEM Incentive scheme and 67 applicants have been approved under Component Champion Incentive scheme. 2) The scheme has been successful in attracting proposed investment of INR 67,690 crore against the target estimate of investment INR 42,500 crore over a period of five years. 3) Apart from Indian business groups, approved applicants for Champion OEM Incentive scheme include groups from countries such as Republic of Korea, USA, Japan, France, Italy, UK and Netherlands.

  • INR 25,938 Cr

    Scheme Outlay

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FAQs

Frequently
Asked Questions

What is the PLI scheme for Champion Auto Component manufacturers?

The PLI Scheme has a budgetary outlay of INR 25,938 crore, for incentives.

The scheme offers financial incentives to boost domestic manufacturing of Advanced Automotive Technology products and attract investments in the automotive manufacturing value chain. Prime objectives of the scheme include overcoming cost disabilities, creating economies of scale, generating employment, building a robust supply chain in areas of Advanced Automotive Technology products and facilitating the Automobile Industry to move up the value chain into higher value added products.

The initial list of eligible Advanced Automotive Technology components was prescribed by MHI. The list can be amended by MHI from time to time depending upon technological developments. For more details refer to https://pliauto.in/

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What is National Automotive Board (NAB)?

In order to capitalise on India's potential to rise to global eminence in the field of automotive R&D, design innovation, technical domain expertise and proactive policy formulation, the National Automotive Board was constituted as per approval of the Cabinet in October 2012 and was registered under the Registration of Societies Act in August 2013. This organisation provides a single platform for dealing with all matters relating to the automotive sector especially on matters pertaining to testing, certification, homologation, administering the automotive labs etc. being set up under NATRIP.

NAB is the operating agency for the implementation of FAME India Scheme including disbursement of funds for the various components. Accordingly, an Online Demand Incentive Delivery Mechanism (DIDM) is in place for release of demand incentives to OEMs as per details available in www.fame-india.gov.in.

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Who is the Project Management Agency (PMA) for PLI-AUTO?

IFCI Limited (IFCI), having its Registered and Head/ Corporate Office at IFCI Tower, 61 Nehru Place, New Delhi – 110019, has been appointed as PMA for the Scheme. Email ID of the PMA is pliauto@ifciltd.com

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Where can the applicant access the details of the Scheme and make submission of the online application form?

The official portal of the Scheme is https://pliauto.in/. All the relevant information such as notifications on Scheme, Guidelines, FAQs, format of Application Form and List of Advanced Automotive Technology Products is available as public information on this portal. All applications are to be submitted through this online portal. The online application form shall be accessible after due registration by the applicant on the portal. 

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Applications will be invited within 60 days of notification of this scheme. The window for receiving applications through the Notice Inviting Applications will be for a period of 60 days. What is the duration of the Application Window? Is the Application Window open?

As per paragraph 5 of the notification dated 09/11/2021 regarding (i) Application Form and (ii) List of Advanced Automotive Technology Products, the window for receiving applications through the Notice Inviting Applications will be open for a period of 60 days from the date of its publication in the official Gazette. Accordingly, the window for receiving Applications is already open with effect from 11th November, 2021 till 23:59:59 hours IST on 9th January, 2022.

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