Policy · Mobility & Logistics

Ather CEO flags PLI scheme quirk excluding EV startups

By Startup Enthusiast · 24 July 2026

What they do

Ather Energy makes electric scooters and charging infrastructure

CEO Tarun Mehta said the Automotive PLI scheme excludes EV startups because they had revenue before the scheme launched

Startups miss a 16% cashback that legacy automakers get, discouraging new capacity and R&D investment

Tarun Mehta, co-founder and CEO of Ather Energy, spoke at the News18 Rising Bharat India Summit (South Edition).
He flagged a 'quirk' in the Automotive PLI (Production Linked Incentive) scheme that excludes EV startups.
The scheme defines eligible 'new companies' as those with zero revenue, so Ather is excluded because it had revenue before the scheme rolled out.
Existing manufacturers need a Rs 10,000 crore revenue threshold to qualify.
Mehta said the exclusion means startups miss a 16% cashback that their competitors receive.
He argued that PLI incentives flow to well-funded legacy automakers, not to startups investing in EV technology and manufacturing.
Mehta noted that startups lead in creating new capacity, jobs, and R&D investment, fulfilling the PLI's objectives.
He said the issue has been raised repeatedly with policymakers, who acknowledge the point, and that this quirk likely explains why the PLI hasn't gained expected traction.

The PLI scheme was designed to boost domestic manufacturing, but its eligibility criteria inadvertently penalise early-stage EV startups.
Ather is one of India's prominent EV startups and has been vocal about policy gaps affecting the sector.
The exclusion could slow the government's goal of accelerating EV adoption and local production.

Ather is preparing to enter the high-volume electric scooter segment priced between ₹1 lakh and ₹1.2 lakh.