India electric mobility ecosystem could be on the verge of a major policy shift as electric vehicle startups are likely to be included in the Production Linked Incentive auto scheme following a push from the Prime Minister’s Office. The move is being seen as an effort to strengthen domestic manufacturing while ensuring that emerging clean mobility players are not left behind due to legacy eligibility norms designed for large automobile manufacturers.
The Production Linked Incentive scheme for the automobile and auto components sector was introduced to boost local manufacturing and attract large scale investments. However many electric vehicle startups were unable to qualify when the scheme was first rolled out because of strict turnover and investment thresholds. Several of these companies were either in early stages of commercial operations or focused on scaling technology rather than meeting financial benchmarks set for traditional auto giants.
With electric mobility now a key pillar of India industrial and climate strategy the Prime Minister’s Office has reportedly asked the Ministry of Heavy Industries to explore ways to bring promising EV startups under the PLI framework. This push reflects a broader recognition that innovation driven companies play a critical role in accelerating adoption of electric vehicles across two wheeler three wheeler and light commercial segments.
Industry discussions suggest that startups such as Ather Energy Euler Motors and River Mobility could benefit if eligibility norms are relaxed or a special window is created. Inclusion in the PLI scheme would allow these companies to access incentives linked to sales and manufacturing performance which could significantly improve their cost structures and support faster expansion.
The Ministry of Heavy Industries has sought feedback from industry bodies and stakeholders on possible changes to the scheme. Established manufacturers already covered under the PLI framework are expected to be consulted to ensure a level playing field while also nurturing new age companies that are driving electric mobility adoption at scale. Policymakers are weighing options such as revised thresholds or a separate category within the scheme tailored for startups.
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