Ola Electric has filed a claim of about ₹400 crore in incentives under the government’s production-linked incentive (PLI) scheme for the automobile and auto components sector for FY25.
The firm has submitted the claim on eligible sales of nearly ₹3,000 crore for the year, translating into an expected incentive of around ₹400 crore, according to a Moneycontrol report.
The electric two-wheeler maker sold 3.59 lakh units in FY25, capturing a 30% market share, compared to 3.29 lakh units and a 35% share in FY24. Calculated at 13–14% of its sales, the incentive is expected to bolster the company’s liquidity and positively impact its financial performance in the coming quarters.
PLI Benefits and Industry Context
The auto PLI scheme, launched in 2021 with an outlay of ₹25,938 crore, is aimed at boosting domestic manufacturing and cutting import dependence. Companies must meet strict localisation and regulatory criteria to qualify, with benefits linked to incremental sales.
In FY24, Ola Electric became the first and only electric two-wheeler manufacturer to secure incentives under the PLI scheme, receiving ₹73.74 crore for sales made during FY23–24. For FY25, the company has again emerged as the top filer in the category.
Gen 3 Scooters and Profitability Outlook
The FY25 claim comes weeks after Ola Electric announced it had secured compliance certification under the PLI scheme for its best-selling Gen 3 range of scooters, which forms the bulk of its sales. The company described the PLI certification on Gen 3 scooter portfolio as a “critical step towards profitability.”
The certification makes the Gen 3 lineup eligible for incentives of 13–18% of determined sales value until 2028. With benefits starting to flow in from the second quarter, the company projects gross margins to climb to 35–40%, with full-year auto EBITDA seen at over 5%.
It also expects the auto business to remain e earnings before interest, taxes, depreciation, and amortization (EBITDA) positive from Q2 onwards. Shares of Ola Electric ended 3% higher at ₹60.79 on the NSE.