Ola Electric has received a sanction order from the Ministry of Heavy Industries for the release of ₹366.78 crore in incentives under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components (PLI-Auto) for claims relating to FY25. The sanction pertains to demand incentives linked to the company’s determined sales value for FY24–25 and will be disbursed through IFCI Ltd, the designated financial institution under the scheme.
“The sanction of ₹366.78 crore under the PLI-Auto Scheme reflects Ola Electric’s manufacturing capabilities and our commitment to building advanced EV technology in India,” an Ola Electric spokesperson said in a release filed with exchanges. The incentive, the company said, recognises its efforts to scale domestic manufacturing, deepen localisation, and drive innovation across the electric mobility value chain.
Strengthening the Bottom Line
The PLI-Auto Scheme is a key government initiative aimed at strengthening domestic manufacturing, promoting advanced automotive technologies, and improving India’s global competitiveness in the auto and auto components sector. Under the scheme, eligible automakers can receive incentives ranging from 13% to 18% of their determined sales value until 2028.
Scaling the Ecosystem
Ola Electric was the first electric two-wheeler manufacturer in India to receive incentives under the PLI-Auto Scheme. Earlier this year, the company said it had received ₹73.74 crore for its determined sales value for FY23–24. In August, Ola Electric also received PLI compliance certification for its Gen 3 scooter portfolio, covering all seven Ola S1 Gen 3 models. With this, both its Gen 2 and Gen 3 scooter portfolios are now PLI-certified, a development the company has described as an important step towards profitability.