Ather, Euler slam auto PLI

India’s auto PLI is supposed to make advanced vehicle manufacturing cheaper and more competitive. But two of the country’s best-known EV startups now say the s(businesstoday.in)toward large incumbents and leave newer electric-only companies with a real pricing handicap. The fight matters because this is not a fringe subsidy — it is a ₹25,938 crore industrial policy tool meant to shape who gets to scale in India’s EV market. (businesstoday.in) ### What are th(heavyindustries.gov.in) designed around size. Mehta said publicly that emerging EV manufacturers are stuck with a 13% to 16% cost disadvantage because they do not qualify for the same incentives available to larger automakers. Euler made the same point — that the policy favors legacy scale over new technology-led entrants. (businesstoday.in) ### Why are startups outside the scheme? Turns out the original design of the auto PLI leaned heavily on financial th(businesstoday.in)tup criticism. That made sense if the goal was to back manufacturers already large enough to invest quickly. But it also meant electric-first companies that were building early, burning cash, and still below that scale were effectively screened out. (businesstoday.in) ### What is thi(businesstoday.in)rore to boost domestic manufacturing of advanced automotive technology products, create scale, and build supply chains. In other words, the state is trying to reduce the cost handicap of making next-generation vehicles in India. The catch is that a scheme designed to remove cost disabilities can still create a new one if the eligibility filter is too narrow. (heavyindustries.gov.in) ### Why does 13% to 16% matter so much? Because EV pricing(businesstoday.in)es volume. And startups are usually still paying for distribution, service networks, product development, and manufacturing ramp-up at the same time. Mehta’s point was basically that this is the exact stage when young EV companies need room to build capability, not a policy wedge that makes every vehicle harder to price competitively. (businesstoday.in) ### Why is this flaring up now? Because(heavyindustries.gov.in)ver had pushed for reform of the scheme, including outreach to policymakers. At the same time, the government has been moving ahead with the existing framework and even discussing larger allocations as production rises. So the startups are no longer quietly lobbying — they are trying to reframe the debate in public as one of fairness, innovation, and export potential. (businesstoday.in) ### Is this just about Ather? No — (businesstoday.in)matters because it suggests this is not one company asking for a special carve-out. It is a structural argument from EV-first manufacturers that the policy architecture still assumes the winners are the companies that were already big before electrification took off. (auto.economictimes.indiatimes.com) ### What would change if the rules changed? A broader eligibility fr(businesstoday.in)startups still need capital, execution, and demand. But it would change the state’s signal. Right now, the signal looks like scale first, innovation second. Ather and Euler are arguing that in an EV transition, that order is backwards. (businesstoday.in) ### Bottom line This fight is really about who industrial policy is(auto.economictimes.indiatimes.com)tartups are saying the scheme needs a rewrite — not because they want special treatment, but because they want a shot at the same one. (businesstoday.in)