DPIIT, Ather Energy Sign MoU for Giving a Boost to EV Manufacturing

New Delhi, July 29, 2025: The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, has signed a significant Memorandum of Understanding (MoU) with Ather Energy, an electric vehicle (EV) manufacturer. This agreement aims to bolster India’s clean mobility ecosystem and deepen support for advanced manufacturing startups. Formalised under the Startup Policy Forum’s ‘Build in Bharat’ initiative, the MoU establishes a comprehensive framework for collaboration between the government and the private sector to propel EV manufacturing and innovation.

At 3:10 p.m. IST, the stock is up by 1.45% at Rs 343.80.

Key Areas of Collaboration

Under this MoU, DPIIT and Ather Energy will collaborate on several key fronts:

• Strategic Mentorship: Providing guidance and support for deep-tech startups.
• Infrastructure Support: Building robust infrastructure across the entire EV value chain.
• Innovation Initiatives: Launching programmes, including the ‘Bharat Startup Grand Challenge’, to foster new ideas.
• Skill Development: Organising skill development and talent co-hosting programmes to enhance the workforce.
• Exposure and Participation: Facilitating exposure visits and participation in marquee events such as the ‘Startup Mahakumbh’.

These collective efforts are designed to empower hardware and technology-driven startups, paving the way for a more robust and globally competitive Indian EV sector.

Leadership Commentary

Joint Secretary of DPIIT, Shri Sanjiv Singh, emphasised the transformative potential of the partnership:

“The electric mobility sector in India is entering a transformative phase. Through this partnership with Ather Energy, we aim to catalyse the development of an enabling environment where startups can contribute meaningfully to EV manufacturing, battery innovation, and clean energy solutions.”

Tarun Mehta, Co-founder and CEO of Ather Energy, remarked:

“We are happy to collaborate with DPIIT to strengthen support systems for hardware and deep-tech startups. With policy support and stronger industry participation, this initiative can help founders tackle core technology challenges and scale high-quality products from India.”

Shweta Rajpal Kohli, President and CEO of the Startup Policy Forum, noted:

“This partnership between DPIIT and Ather Energy brings to life the Startup Policy Forum’s Build in Bharat initiative. Unlocking the potential of India’s manufacturing sector through collaboration is key to building a globally competitive innovation ecosystem.”

Decoding The MoU Effect For The Investors

The Memorandum of Understanding (MoU) between DPIIT and Ather Energy carries strong financial and strategic implications for investors. Here is how it translates into investment value:

• Government Backing: The MoU indicates solid policy support, reducing regulatory risks and encouraging long-term capital inflow into Ather Energy.
• Infrastructure Expansion: With government assistance, Ather can scale up its manufacturing, battery production, and R&D facilities faster, reducing capital expenditure pressure.
• Cost Efficiency: Shared responsibility for infrastructure reduces operational and logistic costs, directly improving profit margins and financial health.
• Ecosystem Influence: Ather’s involvement in mentoring startups and supporting deep-tech innovation can lead to collaborative growth and potential revenue streams.
• Faster Market Penetration: Accelerated product development and rollout under the MoU could increase market share, revenues, and brand valuation in the coming years.

Importance Of The MoU For Ather Energy

The MoU signed with DPIIT under the ‘Build in Bharat’ initiative is strategically significant for Ather Energy, both operationally and in terms of long-term positioning in the EV ecosystem:

• Strengthens Government-Industry Alignment: The collaboration enhances Ather’s alignment with national policy goals in clean mobility and localised manufacturing, giving it an edge in policy-driven incentives and approvals.
• Accelerates Manufacturing Scale-Up: Support for infrastructure development across the EV value chain will enable Ather to ramp up production efficiently and meet rising demand with reduced lead times.
• Boosts Innovation Capacity: Access to government-backed programmes like the ‘Bharat Startup Grand Challenge’ can accelerate in-house R&D and drive cutting-edge product innovation.
• Talent and Skill Pipeline: Joint skill development initiatives will help Ather build a more specialised and future-ready workforce, critical for sustaining product quality and operational efficiency.
• Enhances Strategic Visibility: Participation in marquee events and mentorship activities positions Ather not just as a manufacturer, but as a key ecosystem enabler, strengthening its brand and stakeholder relationships.

This MoU is likely to enhance Ather’s competitiveness in the fast-growing Indian EV market and solidify its role in the next phase of industrial policy and innovation.

Strategic Outlook

The MoU is anticipated to unlock new opportunities for startups engaged in EV manufacturing, clean technology, and advanced industrial applications. By aligning with India’s climate and industrial targets, the initiative supports a self-reliant and future-ready startup environment. With over 50 startups already operating under the ‘Build in Bharat’ umbrella, the DPIIT-Ather alliance establishes a significant precedent for public-private cooperation in driving India’s green manufacturing vision.

About Ether Energy

Ather Energy is an Indian electric two-wheeler manufacturer headquartered in Bengaluru. Founded in 2013 by Tarun Mehta and Swapnil Jain, the company designs, develops, and manufactures intelligent electric scooters, including the popular Ather 450 series and Ather Rizta. Ather Energy operates EV manufacturing facilities in Whitefield, Bangalore, and Hosur, Tamil Nadu. They have also established a comprehensive electric vehicle charging network across India called ‘Ather Grid’, which includes fast-charging points and home charging solutions. Ather Energy aims to redefine urban mobility through technologically advanced, eco-friendly vehicles and a robust supporting ecosystem. The company also recently underwent its Initial Public Offering (IPO) and listed on NSE and BSE in May 2025.

REF:https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2149532

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