Ola Electric, India’s leading electric vehicle manufacturer, has reached a major milestone as the first two-wheeler EV company in the country to secure incentives under the Production Linked Incentive (PLI) Scheme for Automotive and Auto Components (PLI-Auto Scheme).
The Bengaluru-based EV manufacturing startup has been granted a total incentive of Rs 73.74 crore for the Determined Sales Value of FY 2023-24 under the scheme, according to a stock exchange filing by the company. This comes at a time reports of Ola Electric axing over 1000 employees and contract workers have made headlines earlier this week.
“We wish to inform you that, Ola Electric Technologies Private Limited, a wholly-owned subsidiary of Ola Electric Mobility Limited, has received a sanction order dated March 5, 2025, from the Government of India, Ministry of Heavy Industries,” Ola Electric said in its filing. Ola stepped into the world of EVs in August 2021 when it launched its first range of electric scooters.
The Government of India introduced the PLI-Auto Scheme in September 2021 to enhance domestic manufacturing in the automotive sector and encourage the adoption of advanced, clean, and sustainable mobility solutions. The PLI-Auto Scheme is designed to strengthen domestic manufacturing in the automotive sector while encouraging the adoption of advanced, clean, and sustainable mobility solutions.
With a budget allocation of Rs 25,938 crore over five years, The PLI-Auto scheme places special emphasis on electric vehicles, hydrogen fuel cell vehicles, and other advanced automotive technologies. The initiative aims to reduce reliance on imports and establish India as a significant player in the global EV supply chain.
Ola Electric recent developments
According to a recent Bloomberg report, Ola Electric is planning to lay off over 1000 payroll employees and contract workers to reduce its losses. However, there has been no official confirmation by Ola Electric on the same. This isn’t the first time that Ola is about to conduct mass firing in its organisation. Earlier in November, unverified reports claimed that the company kicked out 500 employees.’
Despite this negative news, Ola Electric continues to lead the electric two-wheeler segment with a market share of 28 percent. The company was able to dispatch 25,000 units in February 2025. The company claims to operate over 4,000 sales and service touchpoints across the country.
Last month, Ola Electric launched its first electric motorcycle, the Roadster X, starting from Rs 74,999, ex-showroom. The Bengaluru-based EV manufacturing startup has confirmed that the deliveries will begin this month onwards. The Roadster X series is available in three variants — X for Rs 74,999, X+ 4.5 kWh for Rs 1,04,99 and X+ 9.1 kWh for Rs 1,54,999 (all ex-showroom prices).
