Policy · Mobility & Logistics

Ather CEO criticizes auto PLI scheme exclusion

By Startup Enthusiast · 30 April 2026

What they do

CEO Tarun Mehta criticizes the Auto PLI scheme for excluding startups

Govt official says PLI is for global champions, not startups

Startups face a 13-16% cost disadvantage vs legacy OEMs

Ather Energy CEO Tarun Mehta criticized the government's Auto PLI scheme for excluding startups from benefits.
The Production Linked Incentive (PLI) scheme provides financial incentives to boost domestic manufacturing.
Mehta argued that the eligibility criteria create a significant cost disadvantage for new companies.
Euler Motors CEO Saurav Kumar joined the criticism citing similar 13-16% cost disadvantages.
Government officials stated the scheme is designed for global champions rather than startups.
The Parliamentary Standing Committee recommended differentiated eligibility criteria for startups in the sector.
Bernstein brokerage called for an end to the current Auto PLI scheme structure.
Legacy automakers like Tata Motors and Mahindra & Mahindra are primary beneficiaries of the scheme.

The scheme's revenue thresholds exclude newer players from accessing government subsidies.
Industry leaders argue the current framework stifles innovation and competition in the EV space.

Ather Energy manufactures electric scooters and related mobility solutions.
The company has invested thousands of crores in R&D and manufacturing capabilities.
Ather employs over 4,000 direct employees across its operations.
The company is planning a ₹2,000 Cr investment in a new greenfield facility in Maharashtra.
Ather is backed by Hero MotoCorp, a major traditional two-wheeler manufacturer.
The company trades on the BSE with a share price around ₹935.

Hero MotoCorp (Investor) — Major traditional two-wheeler manufacturer backing Ather Energy.