Ather Energy defers ₹26.25 crore PM E-DRIVE claims amid rare earth supply disruption

Electric two-wheeler maker Ather Energy Ltd on Thursday said it has deferred demand incentive claims worth ₹26.25 crore under the government’s PM E-DRIVE scheme after supply chain disruptions forced temporary deviations from local sourcing norms.

In a regulatory filing, the Bengaluru-based company said China’s export ban on certain heavy rare earth magnets had disrupted the global supply chain, impacting Ather’s traction motor manufacturing process.

As a result, its motor suppliers had to make “temporary adjustments and deviations” from the Phased Manufacturing Program (PMP) guidelines, particularly concerning the domestic fitment of magnets.

The company said the temporary change could affect its ability to submit demand incentive claims for up to 52,500 electric scooters manufactured or to be manufactured under the PM E-DRIVE scheme.

“Discussions are currently underway with the Ministry of Heavy Industries (MHI) for a temporary exemption… until definitive approval is received regarding the deviation, we have decided to defer submission of claims to the extent of ₹262.50 million on these specific vehicles,” Ather stated.

The PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) scheme, which replaced the FAME programme, aims to support the adoption of electric vehicles with an outlay of ₹10,900 crore over two years.

It targets incentives for nearly 25 lakh electric two-wheelers, 3.16 lakh electric three-wheelers, and 14,028 electric buses.

Ather said it has successfully developed a Heavy Rare Earth Free (HREF) motor, which has received type approval from the Automotive Research Association of India (ARAI), and has begun receiving PM E-DRIVE eligibility certificates for different models equipped with the new motors.

The company reiterated its commitment to the Make in India initiative and full compliance with PMP guidelines once the supply chain stabilises.