Electric vehicle manufacturer Euler Motors has urged the Indian government to relax the eligibility criteria under the automobile Production Linked Incentive (PLI) scheme, stating that the current requirements make it difficult for EV start-ups to participate. The company believes that easing these norms could help emerging electric mobility companies contribute more effectively to India’s clean transportation goals.
According to Saurav Kumar, founder and CEO of Euler Motors, many EV start-ups are investing heavily in technology and manufacturing but remain unable to qualify for the scheme because of strict financial thresholds. He emphasized that start-ups play a crucial role in driving innovation in the rapidly growing electric vehicle sector.
Under the current framework of the Auto PLI scheme, manufacturers must meet high eligibility benchmarks, including a minimum global group revenue of ₹10,000 crore and significant fixed asset investments. These conditions are largely designed for established automakers, making it challenging for younger EV companies to gain access to the incentives.
Euler Motors, which focuses on electric commercial vehicles such as cargo three-wheelers and light trucks, has already invested around ₹1,500 crore in its operations. The company is also planning additional investments ranging between ₹500 crore and ₹1,000 crore in the coming years to expand its manufacturing and technological capabilities.
The company suggested that the government should consider evaluating the overall investment made by start-ups rather than focusing only on fixed asset investments. This could include spending on research and development, technology innovation, and product development.
Euler Motors acknowledged that the PLI scheme was designed to support large-scale manufacturing in its initial phase. However, the company believes that enabling EV start-ups to participate would encourage innovation, create new opportunities, and accelerate India’s transition toward sustainable mobility.
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