Policy · Mobility & Logistics

Panel flags PLI gap excluding Ather Energy

By Startup Enthusiast · 16 March 2026

What they do

A parliamentary committee noted the Auto PLI scheme excluded Ather Energy due to high revenue and net worth thresholds

The committee recommended lowering eligibility barriers for EV-focused companies like Ather

If adopted, revised rules could improve Ather's margins and support R&D

The Parliamentary Standing Committee on Heavy Industries flagged a gap in the Auto PLI scheme that excluded Ather Energy.
The committee recommended calibrated flexibility in eligibility norms and differentiated criteria for high-growth segments like electric two-wheelers.
The Auto PLI scheme, launched in 2021, aims to promote advanced automotive technologies and strengthen domestic manufacturing.
Eligibility rules favoured large-scale operations: automakers needed global group revenue above ₹10,000 crore.
An alternate route for new non-automotive investors required a minimum global net worth of ₹1,000 crore as of March 31, 2021, with no revenue threshold.
Ather Energy did not qualify because it did not meet the ₹10,000 crore revenue threshold and did not qualify via the alternate route comparably.
The application window closed on March 31, 2021, with a one-time application structure, leaving no later opportunity for scaling companies.
Ola Electric qualified through the net-worth route, while Tata Motors, Mahindra & Mahindra, Bajaj Auto, Hyundai Motor India, and TVS Motor Company qualified through the revenue route.

Ather Energy is among the earliest manufacturers of locally developed electric two-wheelers in India.
The PM E-DRIVE scheme, launched in October 2024 with an outlay of ₹10,900 crore, focuses demand incentives on e2Ws and e3Ws, but Ather missed PLI benefits.
PLI schemes saw reductions at the revised estimate stage, raising execution concerns.
If recommendations are adopted, a revised PLI could lower eligibility barriers for EV-focused companies, allowing participation based on growth potential and providing incentives on incremental sales.

Ather Energy manufactures electric two-wheelers in India.
It is one of the earliest companies to develop electric scooters locally.
The company sells its scooters directly to consumers through its own retail network and online.
Ather Energy also operates a network of charging stations called Ather Grid.
The company generates revenue from vehicle sales, charging services, and accessories.

If the committee's recommendations are adopted, the revised PLI could lower eligibility barriers for EV-focused companies like Ather Energy.
A revised PLI could allow Ather to participate based on growth potential and provide incentives on incremental sales.
This could improve Ather's margins, support capital expenditure, R&D, and new platform development.