New Delhi, Sept. 26 -- India's oldest vehicle testing agency, the Automotive Research Association of India (ARAI), is stepping up its role in India's clean mobility push. In fiscal year 2025 (FY25), it approved 80 localisation applications under the government's Rs.25,938 crore production-linked incentive scheme for automobiles and auto parts (PLI-Auto)-more than double the 39 approvals in FY24, according to its annual report released on September 15. To streamline the process, ARAI also launched a dedicated portal for localisation testing under the PLI-Auto scheme in June 2024, allowing automakers to submit documents in one place, the report added. Similarly, ARAI also provided approvals for over 350 vehicle models under the Rs.10,900 crore PM E-Drive scheme in FY25. ARAI did not state the number of models approved under the PM E-Drive scheme in the previous fiscal. These schemes target manufacturers and consumers respectively. PLI-Auto incentivizes manufacturers to make zero-emission vehicles while the PM E-Drive scheme reduces the upfront cost of purchasing an electric vehicle for consumers. Currently, 191 vehicle models have received localisation approvals under PM E-Drive, and 123 vehicles and auto components have received similar clearances under the PLI-Auto scheme, according to the respective portals. The data is current as of today and covers all approvals since the schemes began-PLI-Auto, which received Cabinet approval in 2021, and PM E-Drive, cleared by the Cabinet in September 2024. The focus on testing of clean mobility reflects India's push towards reducing fossil fuel emissions and increasing efficiency, at a time when the country's auto industry is reeling from the shock of China's rare earth magnet export cut. In April, China halted the export of rare earth magnets, which are essential in manufacturing all vehicles. This prompted the government to announce fiscal incentives for anyone trying to manufacture these magnets. Mint reported on 13 September that the government is also planning exemptions for electric trucks and buses in the wake of the rare earth magnet crisis, loosening the localization criteria for these vehicle segments under the PM E-drive scheme. Under the second iteration of the Centre's Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India, or FAME, scheme, the government found that a few electric two-wheeler makers were claiming incentives despite not meeting localization targets. The government removed Hero Electric Vehicles Pvt. Ltd, Benling India Energy and Technology Pvt. Ltd and Okinawa Autotech International Pvt. Ltd from the scheme for availing subsidies worth Rs.297 crore cumulatively. The corporate affairs ministry also tasked the Serious Fraud Investigation Office to search the premises of these companies in December. Under the PM E-Drive scheme, automakers must comply with a phased manufacturing programme (PMP) that specifies which components can be imported. Under PLI-Auto, manufacturers need 50% localisation in their products to qualify for incentives. ARAI also tested flex-fuel hybrid vehicles with high ethanol blends-E85, E93 and E100-to measure the emissions gap compared with petrol and diesel vehicles in FY25, the annual report stated. Also, its flex-fuel hybrid testing came amid harsh consumer backlash against a 20% blend of ethanol in petrol (E20), which allegedly reduced fuel efficiency of vehicles.When a public interest litigation was filed in the Supreme Court stating that the mandatory sale of E20 fuel took away the consumers' right to choose whether they wanted pure gasoline or blended flex fuels, the top court dismissed the petition stating that the government's decision to push E20 would benefit farmers. In a press conference held jointly by ARAI, the Society of Indian Automobile Manufacturers (SIAM), and the Federation of Indian Petroleum Industry (FIPI) to address consumer concerns about E20 fuel, officials said that while a marginal drop in fuel economy was observed, concerns about drastic mileage drops "are misplaced."...