Analysis · Mobility & Logistics

Ather CEO says PLI scheme missed true innovators

By Startup Enthusiast · 16 June 2025

What they do

Ather Energy makes electric scooters and builds its own technology

CEO Tarun Mehta said the PLI auto scheme excluded startups like Ather

Ather is betting on premium scooters as the market shifts upward

Ather Energy cofounder and CEO Tarun Mehta gave an interview published on 16 June 2025.
He said the PLI auto scheme (a government program that gives incentives of 13–16% to auto makers) had gaps that excluded promising players like Ather.
Legacy auto players with large cash reserves received PLI benefits, while startups that invested in R&D did not.
Mehta argued that PLI should have been directed at startups, the real pushers of innovation.
He described PLI as a wall that new EV players climb to push larger, richer companies to build electric vehicles.
Ather has raised concerns with the government, which has been receptive.
Mehta said the company is prepared for a zero-subsidy regime starting April next year.

Ather had its IPO months before this interview.
The company is the only startup in India to build an EV, achieve scale, and acquire its technology.
Mehta believes not supporting true startups pushes back the country's electrification efforts.
The interview signals Ather's push for policy changes that favour innovation-driven companies.

Ather Energy manufactures electric scooters and develops its own technology in-house.
The company avoids the sub ₹1 lakh mass market and focuses on premium products.
Mehta said the future is not in cheap scooters; India is an aspirational market wanting better products.
Scooters account for about 38% of the two-wheeler market and are growing twice as fast as motorcycles.
Ather is working on electric motorcycles but will first build a robust scooter portfolio across segments.
The company is betting on the premium wave, which increasingly represents the bulk of the market.

A major growth driver will be a new platform launching in a year or two, which is cost-effective, scalable, and deeply vertically integrated.
The new Aurangabad plant will be central to this platform.
The platform will help reach a broader market, expand the portfolio, and lower prices while maintaining quality.
Ather is working on electric motorcycles but will first strengthen its scooter lineup.