New Delhi, 23 February (HS): Deep-tech electric vehicle (EV) startups in India have urged the Ministry of Heavy Industries to ensure full utilisation of funds allocated under the Production Linked Incentive (PLI) scheme, stating that only a fraction of the budgeted amount has been disbursed so far.

Industry representatives said that of the funds announced under the auto PLI scheme last year, only around 10 per cent has been utilised, largely benefiting select segments. They argued that limited disbursal has not significantly boosted domestic production or strengthened emerging players in the EV ecosystem.

The Union Budget for 2026-27 has earmarked Rs 5,939 crore for the PLI scheme. However, according to early 2026 assessments, fund utilisation for EV startups under the scheme has remained low. In the advanced chemistry cell (ACC) battery segment, only about 2.8 per cent of the allocation target has reportedly been disbursed as incentives. Industry estimates suggest that by the end of FY2026, overall utilisation may reach only around 12 per cent despite increased budgetary allocation.

Startups have maintained that merely enhancing allocations will not accelerate growth unless a larger share of the funds reaches emerging EV manufacturers. They said that established players continue to benefit disproportionately, making it challenging for new entrants to remain competitive.

Euler Motors Founder and CEO Saurav Kumar said the commercial EV segment offers strong returns but has not received adequate support under the PLI framework. He suggested that the scheme’s structure be revised to prioritise actual EV sales rather than turnover-based eligibility criteria to stimulate employment and sectoral growth.

River Mobility Co-founder and CEO Arvind Mani said the primary objective of India’s EV industry should be sustainable capacity creation within the country. He emphasised the need to support innovators to position India as a global EV manufacturing hub.

Hindusthan Samachar / Jun Sarkar