Electric vehicle manufacturer Euler Motors has called for a relaxation in the eligibility criteria of the government’s automobile Production Linked Incentive (PLI) scheme to enable EV startups to participate. Founder and CEO Saurav Kumar told PTI in an interview that the current revenue and investment thresholds make it difficult for emerging EV companies to qualify for the scheme.


Revenue and Investment Requirements

Under the current auto PLI scheme, an original equipment manufacturer (OEM) must have a minimum global group revenue of ₹10,000 crore and invest ₹3,000 crore in fixed assets to be eligible.

Kumar said that these requirements have prevented companies like Euler Motors from participating in the programme despite operating in segments covered under the scheme.

Euler Motors currently manufactures electric three-wheeler cargo vehicles as well as electric four-wheeler commercial cargo vehicles.


Suggestion to Broaden Investment Definition

Kumar said the government could consider expanding the investment criteria beyond fixed assets to include the overall capital invested by startups.

He noted that Euler Motors has already invested around ₹1,500 crore and plans to invest another ₹500–1,000 crore over the next two to two-and-a-half years.

According to him, recognising overall investments could help startups working on EV technologies and manufacturing capabilities qualify for the scheme.


Startups Seeking Inclusion

Kumar said several startups are contributing to the development of the EV sector, including in the electric commercial vehicle segment.

He added that incentives under the PLI scheme could help such companies expand production and technology development.


Company Acknowledges Policy Intent

Kumar also said the company understands that the scheme may have been designed with larger manufacturers in mind and that there may have been specific considerations when the policy was framed.

However, he said startups that have invested capital and created employment should also be considered for inclusion under the programme.