Ather CEO rips into India’s Auto PLI scheme, Says it excludes EV startups

Tarun Mehta, co-founder and CEO of Ather Energy Ltd., has criticized the Indian government’s Production Linked Incentive (PLI) scheme for excluding most electric vehicle (EV) startups. Mehta’s comments follow government statements that the PLI scheme is designed for “global champions,” with eligibility requiring at least Rs 10,000 crore in revenue and Rs 3,000 crore in fixed assets. These requirements exclude startups such as Ather, River, and Euler Motors.

Key Highlights

• Ather CEO criticizes PLI scheme for excluding most EV startups
• PLI eligibility requires Rs 10,000 crore revenue and Rs 3,000 crore fixed assets
• Startups like Ather, River, and Euler Motors are not eligible for incentives
• Mehta calls for PLI criteria to reflect R&D and localisation, not just financial scale

PLI Scheme and Startup Exclusion

The government’s PLI scheme aims to boost India’s auto sector by rewarding large companies that meet high financial thresholds. Officials have reiterated that the scheme targets companies with significant revenue and fixed assets. As a result, most new-age EV companies do not qualify for these incentives.

Mehta argues that this approach overlooks the contributions of startups to India’s EV transition. He points out that startups have already achieved many objectives the PLI scheme seeks to promote, including localization, advanced technology, and capacity building. Unlike established automakers, these startups have invested heavily in product engineering, software, and manufacturing without the benefit of legacy scale.

Competitive Imbalance and Market Impact

According to Mehta, the current PLI criteria create a competitive imbalance in the market. Companies that qualify for incentives gain a cost advantage of 13–16 percent over those that do not. This disparity could distort market dynamics and slow the pace of EV adoption in India.

Mehta warns that the focus on large incumbents may weaken the broader EV ecosystem. He emphasizes that startups are the “engine” of India’s EV shift and that excluding them from incentives could undermine the country’s electrification goals.

Call for Policy Recalibration

Mehta does not seek a separate scheme for startups. Instead, he calls for a recalibration of existing PLI criteria. He suggests using metrics such as research and development intensity, localization levels, and sector-specific scale, rather than relying solely on legacy financial thresholds.

This is not the first time Mehta has raised concerns about restrictive eligibility norms. He has previously argued that such policies prevent high-potential EV startups from accessing incentives that could accelerate domestic manufacturing and exports.

CarBike 360 Says

If India wants to be a true EV innovation hub, its PLI framework must evolve beyond legacy-vehicle balance sheets and recognize startups that have already built deep R&D and charging infrastructure. By recalibrating eligibility thresholds, the government can level the playing field, spur faster electrification, and leverage domestic EV pioneers like Ather to drive both mass‑market adoption and global exports.