PMO Push: Indian EV Startups Likely to Join PLI Auto Scheme | Ather, Euler May Benefit

In a major potential policy shift for the Indian electric vehicle sector, the government is poised to reopen the Production Linked Incentive (PLI) scheme for automobiles to include new age EV startups.

Following a direct "nudge" from the Prime Minister’s Office (PMO), the Union Ministry of Heavy Industries is actively considering widening the eligibility criteria of the ₹25,938 crore scheme. This move aims to level the playing field for pure play electric vehicle manufacturers who were previously excluded in favor of legacy automakers.

Key Highlights:

• PMO Intervention: The Prime Minister's Office has pushed for the inclusion of EV startups to boost the ecosystem.

• Potential Beneficiaries: Ather Energy, River Mobility, and Euler Motors are frontrunners to enter the scheme.

• Next Steps: The Society of Indian Automobile Manufacturers (SIAM) will discuss this on January 23.

• Market Growth: The Indian EV market is projected to hit $110 billion by 2029.

Leveling the Playing Field for EV Startups

When the PLI Auto scheme was originally launched in 2021, the eligibility norms regarding revenue, net worth, and global presence were stringent. These rules inadvertently favored established legacy players (like Tata, Mahindra, and Maruti Suzuki) while excluding smaller, innovative EV startups that were not fully operational or profitable at the time.

Industry representatives have long lobbied for a "reopening of the PLI window," arguing that companies like Ather Energy and Euler Motors who are now significant market contributors deserve the same government backing as traditional auto giants.

Who Stands to Gain?

If the Union Cabinet approves the changes to the eligibility criteria, several "electric only" manufacturers could see a massive boost in their manufacturing capabilities.

According to sources, the ministry is specifically looking at including:

• Ather Energy: A leading electric scooter manufacturer that expects to cross 200,000 unit sales in 2025.

• River Mobility: A newer entrant that began operations in 2023, targeting 15,000 units in sales next year.

• Euler Motors: A key player in the commercial electric vehicle space looking to scale up production.

Upcoming SIAM Meeting and Approvals

The proposal is currently moving fast. The Society of Indian Automobile Manufacturers (SIAM) is expected to take up the matter during its electric mobility group meeting scheduled for January 23, 2026.

However, widening the scheme is not an administrative decision alone; any alteration to the core eligibility criteria of the PLI scheme will require formal approval from the Union Cabinet.

Market Context: Why Now?

The push comes at a critical time. While India sold approximately 1.9 million electric vehicles in 2024, sales momentum has recently softened. Including startups in the PLI scheme is seen as a vital step to reinvigorate the sector, lower production costs, and accelerate the localization of EV components.

Market intelligence firm Mordor Intelligence estimates that despite current headwinds, the Indian EV market is on track to reach a valuation of $110 billion by 2029.