PLI Reform: India’s $100 Billion Ticket to Global EV Dominance, Says Ather CEO

Tarun Mehta, Co-founder and CEO of Ather Energy, has issued a clarion call for urgent reforms in India’s Production Linked Incentive (PLI) scheme. Speaking at the BS Manthan 2026 summit, Mehta highlighted that while India is poised to capture a $100 billion global electric two wheeler market, current policy frameworks may be inadvertently "penalizing" the very startups driving innovation.

India’s Structural Edge Over China

According to Mehta, India holds a distinct "structural advantage" in the mid-tier EV segment. He noted that Indian OEMs are now outpacing even China in critical areas including:

• Software Integration: Advanced UI/UX and smart features.

• Battery Engineering: Vertically integrated Battery Management Systems (BMS).

• Charging Ecosystems: Indigenous fast-charging infrastructure.

• Cost Efficiency: Competitive power electronics tailored for emerging markets.

"India is genuinely at the cutting edge," Mehta stated, pointing out that legacy manufacturers already account for 7–8% of global two wheeler revenue. Transitioning this dominance to EVs is the next logical step for the 'Make in India' initiative.

The "Startup Flaw" in the PLI Scheme

The headline of Mehta’s keynote focused on a critical bottleneck: PLI Eligibility. Currently, the framework often favors legacy giants with massive petrol vehicle balance sheets, while pure play EV startups face rigid entry barriers.

Mehta flagged a specific flaw where startups with even minimal revenue were rendered ineligible for certain benefits. "PLI, meant to push electrification, is penalising pure EV players. They are the engine of innovation," he argued. Without including startups on an equal footing, India risks slowing down its long term export competitiveness.

The Path to a $100 Billion Export Hub

For India to become a global EV export hub, the industry consensus is shifting toward innovation first incentives. Mehta emphasized that Ather Energy spent years on R&D and over 2,500 tests before launching their first product, setting a quality benchmark that is now being recognized globally.

As global benchmarks for electric mobility evolve, Mehta believes Indian standards in reliability and testing will become the gold standard for the world.