EV makers Ola, Ather’s shares soar on hopes of easier access to Chinese rare earth magnets, GST reform benefits

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26 Aug, 2025 12:21

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Shares of EV two-wheeler makers sharply surged on September 1, with Ola Electric and Ather Energy rising more than 14 percent each on positive outcome from the Shanghai Cooperation Organization (SCO) summit in China, and the tailwind from proposed GST reforms that could drive sales.

Ola Electric shares hit an intraday high of Rs 61.88 while Ather Energy shares hit an all-time high of Rs 512.80 apiece during the trade.

PM Modi at SCO Summit

Over the weekend, Prime Minister Modi met Chinese President Xi Jinping, at a time when India's automotive sector has been seeking further relaxation in Beijing's curbs on rare earths magnets, which have been in place since April, hampering EV makers' production plans.

More than 50 Indian applications to import heavy rare earth magnets are awaiting approval in China, Bloomberg News had reported citing people familiar with the matter. China has, however, started lifting the restrictions on rare earth metals and critical minerals exports amid signs of a thaw in trade relations with China. While an official statement is still awaited, PM Modi's visit to China has likely boosted hopes for relaxation in export curbs, which will likely benefit EV-makers like Ola Electric and Ather Energy.

GST Reforms Expectations

The GST Council, chaired by Finance Minister Nirmala Sitharaman, is slated to meet in New Delhi on September 3-4 to deliberate on the Centre's proposal for a simplified two-rate structure of 5 percent and 18 percent. Market experts are attributing this to be a strong boost for several sectors, and autos, including EVs, are likely be benefitted from the reform.

PLI push for Ola Electric

Shares of Ola Electric Mobility have been extending gains after securing PLI certification from the Centre for its Gen 3 scooter portfolio.

In an exchange filing on August 26, Ola Electric had said, "(Ola Electric) has received Certification for Compliance with the eligibility assessment requirements under the Production Linked Incentive (PLI) Scheme for automobile and auto components sector, for its Gen 3 scooter portfolio. This certification was granted by the Automotive Research Association of India (ARAI) under the aegis of the Ministry of Heavy Industries, Government of India to all of the seven Ola S1 Gen 3 scooters."

The EV-scooter maker said its Gen 2 and Gen 3 scooter portfolio are now PLI-certified. Its Gen 3 portfolio, which comprises S1 Pro 3 kWh, S1 Pro 4 kWh, S1 Pro+ 4 kWh, S1 X 2 kWh, S1 X 3 kWh, S1 X 4 kWh and S1 X+ 4 kWh, comprises majority of its current sales. As a result, this certification is set to significantly enhance its profitability from Q2FY26 onwards, the company said.

Investor interest in the shares have revived after Helios Mutual Fund recently added Ola Electric to its portfolio, Dinshaw Irani, CEO of the fund house had told The Economic Times.

Irani compared Ola to Eternal (Zomato), to showcase Helios' early bet in the food delivery giant played out. Helios had bought Zomato shares for around Rs 40 apiece, and the shares are currently trading at around Rs 320 apiece.

Ola Electric shares are currently trading over 14 percent higher at Rs 61.62 apiece, having rallied over 56 percent from its 52-week low of Rs 39.60 apiece, hit in July this year.

Ather Energy shares were trading around 12 percent higher after hitting an all-time high earlier in the session, and the shares have gained 69 percent since listing in May this year.

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