India’s electric vehicle story has reached an important point. For the last few years, government subsidies helped make EVs more attractive for buyers and gave companies the confidence to launch new models. Now, the auto industry is being told to prepare for a future where this support will slowly reduce.

At the SIAM Annual Convention, Heavy Industries Secretary Kamran Rizvi said EV subsidies and government support will come to an end in the coming years, and companies must be ready to stand on their own. This does not mean subsidies will stop tomorrow. But it does mean the industry cannot depend on government discounts forever.

Why EV subsidies were given in the first place

EV subsidies were created to make electric vehicles cheaper for early buyers. In a new market, prices are usually high because batteries, motors, electronics and charging systems are still scaling up.

Schemes like FAME-II and PM E-DRIVE helped reduce the upfront cost of electric two-wheelers, three-wheelers, buses and charging infrastructure. The PM E-DRIVE scheme has an outlay of Rs. 10,900 crore, and later reports said support for electric two-wheelers was extended till March 31, 2028, with extra allocation for the segment.

In simple words, subsidies acted like a push. They helped buyers try EVs and helped companies build demand.

Will EV prices rise for buyers

Yes, EV prices can rise if subsidies reduce and companies do not cut costs at the same time.

For example, if an electric scooter currently gets a direct incentive, the buyer pays less at the showroom. Once that support goes away, the company has three choices. It can pass the full increase to the customer, absorb some cost itself, or reduce prices through better manufacturing and local sourcing.

The final effect will depend on the segment. Electric two-wheelers may feel the impact more because buyers are price-sensitive. Electric cars may be less affected by direct purchase subsidies, as many private electric cars already depend more on tax benefits, state incentives, lower running cost and brand offers.

What automakers need to do now

For companies, the message is clear. EVs must become strong products, not just subsidy-driven products.

Automakers will need to localize batteries, battery management systems, motors, controllers and other key parts. Localization simply means making more parts in India instead of importing them. This can reduce costs, improve supply, and protect companies from currency changes or global shortages.

They also need to spend more on research and development. Buyers will not accept weak range, slow charging, poor service or expensive battery replacement just because the vehicle is electric. The product has to make sense in daily life.

Companies such as Tata Motors, Mahindra, Ola Electric, Ather Energy, TVS, Bajaj, Hero MotoCorp, Hyundai, MG Motor and BYD will all face this pressure in different ways.

Effect on common people

For common people, the end of subsidies is not only bad news. It can also make the EV market healthier in the long run.

When subsidies reduce, only serious companies with good products, service networks and cost control will survive. This can reduce poor-quality launches and make buyers more careful.

But in the short term, some EVs may become costlier as per reports. A family planning to buy an electric scooter or car should compare the full ownership cost. This means looking at purchase price, charging cost, petrol savings, battery warranty, service cost and resale value.

For someone who rides 40 to 60 km daily and can charge at home, an EV may still save money even with lower subsidies. But for someone with low daily usage or no charging access, a petrol, CNG or hybrid vehicle may remain more practical.

Charging will become even more important

Rizvi also pointed to charging infrastructure as a key area for the industry. This matters because buyers do not choose EVs only by price. They also ask one simple question – where will I charge it?

More public chargers, apartment charging, office charging and highway charging can reduce fear among buyers. If charging becomes easy, people may accept EVs even without large subsidies.

Conclusion with key takeaways

The possible end of EV subsidies is a natural next step for India’s electric mobility market. Subsidies helped the market start. Now the industry has to prove that EVs can win on real value.

Key takeaways –

• EV subsidies in India are expected to reduce over the coming years.
• Prices may rise if companies cannot reduce battery and manufacturing costs.
• Electric two-wheelers could feel the impact more than premium EV cars.
• Automakers must focus on local parts, better batteries, charging and service.
• Common buyers should compare total ownership cost, not just showroom price.

References- ET, Business Today, PIB, Autocar India

Yulu has raised $93 million in fresh funding, giving the Bengaluru-based electric mobility startup more power to expand its fleet and move deeper into India’s fast-growing delivery economy.

The round includes $63 million in equity and $30 million in debt, according to ET. The equity part was led by GEF Capital Partners. Yulu has not disclosed the names of the lenders, other equity investors or its latest valuation.

This funding comes at an important time for Yulu. The company started as a shared mobility service for short city rides, but its biggest growth today is coming from delivery workers who use its electric two-wheelers for food delivery, grocery delivery and quick commerce orders.

What Yulu Does

Yulu is an electric mobility startup that offers shared electric two-wheelers. Its vehicles are mainly used for last-mile movement, which means short-distance travel within cities.

Earlier, Yulu was more focused on office commuters and people who needed quick rides between metro stations, homes and workplaces. After the pandemic, the business changed sharply. Work-from-home reduced daily office travel, while food delivery and quick commerce grew very fast.

Yulu adapted to this shift. Its vehicles are now widely used by gig workers delivering orders for platforms such as Zomato, Swiggy, Blinkit and Zepto.

For a simple example, a delivery rider may not want to buy an electric scooter, manage maintenance or worry about battery charging. Yulu gives access to a ready vehicle, while its ecosystem handles charging, battery swapping and service support.

Founders And Founding Year

Yulu was founded in 2017 in Bengaluru by Amit Gupta, R.K. Misra, Naveen Dachuri and Hemant Gupta.

Amit Gupta, Yulu’s co-founder and CEO, is also known as a co-founder of InMobi. Naveen Dachuri is linked with the company’s technology side, while R.K. Misra and Hemant Gupta have been part of Yulu’s founding and operations journey.

The startup began with a simple idea – reduce traffic congestion and pollution in Indian cities by making short-distance electric mobility easier and more affordable.

Why The $93 Million Funding Matters

Yulu is an asset-heavy business. That means it needs money not only for software and teams, but also for vehicles, batteries, service hubs and city-level operations.

This is very different from a pure app business. If Yulu wants to serve more riders, it needs more electric vehicles on the road. It also needs better charging and swapping support, regular maintenance, parking zones, fleet tracking and operations teams.

The new funding will help Yulu increase its active fleet to 200,000 electric vehicles over the next two years. That is a big jump from its earlier fleet size and shows that the company is preparing for higher demand from delivery partners and enterprise customers.

The Main Aim Of The Funding

The main aim of the funding is to scale Yulu’s electric vehicle fleet and widen its business beyond low-speed rental EVs.

Yulu plans to expand into ecommerce logistics, bike taxis and express parcel delivery. These are closely connected areas. All of them need reliable, low-cost vehicles that can run many short trips every day.

The company is also preparing to launch Yulu Express, a full-sized, high-payload electric scooter. This vehicle is designed for heavier delivery work compared with its existing low-speed EVs.

This is an important move. Quick commerce and express delivery riders often carry larger bags, multiple orders and heavier parcels. A stronger scooter can help Yulu serve more serious logistics use cases, not just short urban movement.

Why Quick Commerce Is Important For Yulu

Quick commerce has changed India’s urban delivery market. People now expect groceries, snacks, personal care items and daily-use products to arrive in minutes.

Behind that speed are thousands of riders making short trips from dark stores to customer homes. These riders need vehicles that are affordable, easy to access and available for long working hours.

Yulu has positioned itself as a mobility partner for this workforce. According to the reports, Yulu says its fleet supports more than 750,000 doorstep deliveries daily and powers over 15 percent of quick-commerce deliveries across India’s four largest metro markets.

That explains why investors are paying attention. If quick commerce keeps growing, the demand for delivery-ready electric vehicles can also rise.

Yulu’s Business Shift After Covid

Yulu’s journey has not been straight. Before Covid-19, many of its vehicles were used for short office commutes. But when people stopped travelling to offices daily, vehicle usage dropped.

Instead of shutting down that model completely, Yulu shifted towards gig workers. This was a practical pivot. Delivery demand was rising, and riders needed affordable vehicles.

The company launched DeX, a vehicle designed for delivery use, and built partnerships with major delivery platforms. That changed Yulu’s business from a consumer commute service into a larger electric mobility platform for commercial use.

Financial Performance And Growth

Yulu says its revenue grew seven times between FY23 and FY26. The company also says it has remained Ebitda positive since April 2025. Ebitda positive means the business is earning more than its operating expenses before accounting for interest, tax, depreciation and amortization.

According to report, Yulu’s FY25 operating revenue nearly doubled to Rs. 237.4 crore, while its net loss narrowed by 12 percent to Rs. 126 crore.

These numbers matter because EV fleet companies need strong utilisation. If vehicles sit idle, the business becomes costly. If more riders use the vehicles for more hours each day, the economics improve.

Competitors And Market view

Yulu competes in the broader electric mobility, fleet rental and delivery vehicle space.

Its competitors and similar players include Zypp Electric, Bounce Infinity, Baaz Bikes, Moto Business Service India and other EV fleet operators that work with delivery riders or enterprises.

Zypp Electric is active in EV-as-a-service for last-mile delivery. Bounce Infinity has worked on electric scooters and battery-swapping models. Baaz Bikes focuses on electric vehicles and battery swapping for gig workers.

Yulu’s edge is its existing operating scale, partnerships with Bajaj Auto and Magna International, and its deep presence in delivery-led use cases. Bajaj Auto helps on vehicle manufacturing, while Magna is linked with its battery-swapping network through Yuma Energy.

Challenges Ahead

Yulu has strong momentum, but the road ahead is not easy.

Fleet expansion needs capital, discipline and high vehicle usage. The company must keep its vehicles running, maintain batteries properly and manage service hubs across cities.

Competition can also grow as more companies notice the opportunity in electric delivery fleets. Quick commerce platforms may also push for better pricing from mobility partners.

Another challenge is regulation. Bike taxi rules, EV fleet permits and city-level transport policies can change. Yulu will need to stay flexible as it expands into new use cases.

Still, the company has one clear advantage. It has already lived through a difficult business pivot and found a stronger use case in gig delivery.

Conclusion With Key Takeaways

Yulu’s $93 million funding round is more than a capital raise. It is a signal that India’s electric delivery economy is becoming bigger and more organised.

The company plans to use the money to grow its EV fleet, expand service hubs, deepen enterprise partnerships and launch Yulu Express for higher-load delivery use cases. If it executes well, Yulu can become a key mobility backbone for quick commerce, ecommerce logistics and city-level electric transport.

Key takeaways –

• Yulu has raised $93 million in fresh funding, including $63 million equity and $30 million debt.
• The equity round was led by GEF Capital Partners.
• Yulu was founded in 2017 by Amit Gupta, R.K. Misra, Naveen Dachuri and Hemant Gupta.
• The company plans to grow its active fleet to 200,000 EVs over the next two years.
• The funding will support ecommerce logistics, bike taxis, express parcel delivery and the launch of Yulu Express.