ARAI Relaxes Export Certification Rules, Permits Use of Existing DVA Certificates Under Auto PLI Scheme

Written by: Team Angel OneUpdated on: 3 Jun 2026, 6:33 pm IST
ARAI has withdrawn the requirement for separate DVA certification for eligible export vehicle variants under the auto PLI scheme.
ARAI Relaxes Export Certification Rules
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The Automotive Research Association of India (ARAI) has revised documentation requirements for vehicles exported under the automobile production-linked incentive (PLI) scheme, as per news reports.  

The change follows representations from vehicle manufacturers regarding additional certification procedures introduced last year.  

In a notice issued on Monday, ARAI stated that export variants sharing the same Bill of Materials (BoM) and product description as domestic models can use the existing Domestic Value Addition (DVA) certificate issued for the domestic version. 

What the Change Means 

A BoM is a list of parts, components, and raw materials used in manufacturing a vehicle. DVA measures the share of a vehicle’s value created within India through local sourcing, manufacturing and other domestic inputs. 

Under the auto PLI scheme, companies are required to meet prescribed DVA levels to qualify for incentives. This clarification means manufacturers will not need to seek separate certification for export variants that are identical to approved domestic models. 

Industry Concerns Over Additional Paperwork 

The issue dates back to December 22, 2025, when ARAI issued a communication requiring separate DVA certificates for export models. Automobile manufacturers maintained that the requirement was not part of the scheme’s original operating framework. 

Industry representatives also noted that fresh certification required extensive documentation from suppliers across the value chain. Since localisation data must be verified at multiple levels, the process could take several months for each model. 

Matter Discussed with Ministry 

The requirement was discussed during a meeting between automobile manufacturers, testing agencies, and officials from the Ministry of Heavy Industries (MHI) on April 23. 

During the discussions, officials sought clarification on whether industry stakeholders had been consulted before the December communication was issued.  

Testing agencies were also asked to review the requirement, as the PLI scheme does not separately classify vehicles based on whether they are sold domestically or exported. 

Treatment of Export Variants 

ARAI has also clarified the procedure for export models that differ from domestic versions in certain components. Such vehicles will be treated as variants under the existing certification framework rather than as entirely new products. 

A fresh application will be required only if there is no previously certified domestic model. In such cases, the export model will serve as the reference model for future variant assessments. 

Read MoreIndia’s Exports Jump to $43.56 Billion in April 2026 Amid Double-Digit Growth! 

Conclusion 

The revised norms remove separate certification requirements for several export models and simplify compliance procedures for companies participating in the auto PLI scheme. 

For daily market updates and regular stock market news in Hindi, stay tuned to Angel One's share market news in Hindi. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Jun 3, 2026, 1:03 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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