The government may widen the PLI Auto scheme to include electric only manufacturers, easing entry beyond established automotive players.
India’s electric vehicle startups may soon be brought under the Production-Linked Incentive scheme for automobiles, following a nudge from the Prime Minister’s Office, according to people aware of the matter. The Union ministry of heavy industries is considering the inclusion of electric-only manufacturers such as Ather Energy, River Mobility and Euler Motors in the ₹259.38 billion PLI-Auto scheme, which currently favours larger, established players.
The Society of Indian Automobile Manufacturers is expected to take up the matter at its electric mobility group meeting on 23 January. Industry representatives have been lobbying for a reopening of the PLI window, arguing that new-age EV companies were not operational or failed to meet eligibility norms when the scheme was launched in 2021. Any change to eligibility criteria would require approval from the Union cabinet.
The development comes at a time when EV sales momentum has softened. India sold about 1.9 million electric vehicles in 2024, down from earlier expectations, but the market is still projected to grow sharply over the medium term as costs fall and new models are launched. Market intelligence firm Mordor Intelligence estimates the Indian EV market could reach $110 billion by 2029.
Ather Energy sold around 126,000 units in 2024 and expects sales to cross 200,000 in 2025. River Mobility, which began operations in 2023, aims to sell 15,000 units next year, while Euler Motors plans to scale up its electric commercial vehicle volumes. Inclusion in the PLI scheme could provide a significant boost to these companies’ manufacturing and localisation plans, strengthening India’s EV ecosystem.
