PLI-Auto 2026 Update Introduces New Performance Criteria For BEVs

The Ministry of Heavy Industries (MHI) has updated the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components (PLI-Auto) in India, effective from 13th January 2026. The amendment changes the performance criteria for Battery Electric Vehicles (BEVs) to qualify for incentives. Earlier, BEVs had to follow the FAME-II scheme, but now they must meet specific standards mentioned in Table 1A of the notification. 

These standards cover different types of BEVs, including two-wheelers, three-wheelers, four-wheelers, e-buses, trucks, and quadricycles, and are based on the PM E-DRIVE and FAME-II schemes. Two-wheelers and three-wheelers must follow Annexure-3 of the PM E-DRIVE Scheme, trucks follow Annexure-3A, and quadricycles must meet minimum requirements for range, speed, acceleration, and energy consumption as per Appendix-1. 

All BEVs must be tested by MHI-approved agencies, and every vehicle should have an Electric Regenerative Braking System. Testing follows the Central Motor Vehicles Rules (CMVR) standards to ensure accuracy in energy efficiency, speed, and acceleration. This amendment replaces all previous references to BEV performance criteria in the PLI-Auto scheme. The update encourages high-quality manufacturing, ensures measurable performance standards, and supports India’s goal of promoting electric mobility by offering clear incentives to eligible BEVs.