Govt. Mulls Adding EV Startups Ather Energy, River Mobility and Euler Motors to PLI Scheme

The Union ministry of heavy industries (MHI) is working to include electric vehicle (EV) startups in its flagship production-linked incentive (PLI) scheme for automobile and auto component industry following prompting from the Prime Minister's Office (PMO), three people aware of the matter said, as reported by Mint.

As many as 82 companies are shortlisted under the PLI-Auto scheme, responsible for India's green mobility push and advanced automotive technologies.

The ministry of heavy industries, the nodal agency for the PLI scheme, has sought inputs from auto industry body Society of Indian Automobile Manufacturers (Siam) on including companies such as Ather Energy, River Mobility and Euler Motors in the ₹25,938-crore programme, which received the Union cabinet's approval in 2021. These companies either hadn't started operations when the scheme was being finalised or did not meet the PLI-Auto's stringent revenue and net worth criteria.

SIAM to Discuss Proposal

SIAM is set to take up the issue for discussion on 23rd January in a meeting of its electric mobility group (EMG). 

Ather, River, and Euler have been lobbying the government to be included in the incentive scheme that has disbursed ₹2,321.94 crore cumulatively in FY25 and FY26, and will be operational till FY29.

Growing EV Market and Policy Review

The development comes in the backdrop of two million EVs sold in the country in 2025, up from about 1.9 million in 2024, according to the government's Vahan registry portal. 

India's EV market is poised for a significant value surge, with new models being launched and zero-emission vehicles becoming more affordable for consumers gradually, as manufacturers look to achieve economies of scale.

Market intelligence firm Mordor Intelligence pegged India's EV market to grow to about $110 billion by 2029, from about $55 billion in 2025.

Ather, which was founded in 2013, launched its first vehicle in 2018, and became a publicly listed company in 2025. River Mobility was set up in 2021, and began sales in 2023. Euler Motors was founded in 2018, and launched its first vehicle in 2021.

Ather sold about 126,000 EVs in 2024, and a little over 200,000 in 2025, according to Vahan. Euler, which makes electric three-wheelers and small trucks, sold about 3,500 units in 2024 and roughly 5,000 units in 2025. River Mobility, which makes electric two-wheelers, sold about 2,500 units in 2024, and a little over 15,000 units in 2025.