Policy · Mobility & Logistics

Ather Energy pushes for inclusive PLI reforms

By Startup Enthusiast · 31 December 2025

What they do

The Startup Policy Forum, which counts Ather Energy as a member, wrote to the PMO seeking a multi-window PLI framework for startups

Current PLI scheme concentrated benefits among large automakers like Tata Motors, while Ola Electric received ₹366.78 crore under the scheme

Startups argue rigid rules and high thresholds exclude innovators from EV incentives

Ather Energy, along with Euler Motors and River Mobility, wrote to the ministry of heavy industries in December 2025 to reform the ₹25,938-crore PLI scheme for automobiles.
The Startup Policy Forum, of which Ather is a member, separately wrote to the PMO seeking a review of the Auto PLI scheme.
The letter proposes a multi-window framework so existing OEMs and new entrants can apply in separate tranches.
It advocates reduced entry thresholds on turnover and fixed asset investment for startups and deep-tech companies.
It suggests disqualifying entities that fail to meet prescribed sales thresholds after acceptance, creating opportunities for sustained sales players.
It also advocates linking PLI incentives to R&D, patent filings, IT creation, and commercialisation of local technologies, not just sales.

The PLI-Auto scheme application window closed March 31, 2021, when many startups were smaller and could not meet the thresholds.
Legacy automakers like Tata Motors, M&M, Bajaj Auto, Hyundai Motor India, and TVS Motor qualified under the revenue category.
Ola Electric received ₹366.78 crore under the PLI scheme for claims pertaining to 2024-25.
EV penetration in two-wheelers has stagnated at ~5%, falling short of Niti Aayog's 2030 goals.
Startups argue that legacy players have done little to push electrification or initiate EV exports.

Ather Energy manufactures electric scooters with features like touch screens, over-the-air updates, and rapid charging.
It pioneered 8-year battery warranties, LFP batteries, frame motors, and rare-earth free motors.
The company sells its scooters through experience centres and online in India.
It also operates a charging network called Ather Grid.