Shares of Ola Electric Mobility rallied as much as 5 percent on Friday to Rs 57.50, taking weekly gains to nearly 20 percent. A mix of policy triggers and company-specific developments fuelled the rally, with the highlight being the company’s Production Linked Incentive (PLI) certification for its Gen 3 scooter portfolio.
In an exchange filing on August 26, the EV maker said it had received certification of compliance under the PLI scheme for automobiles and auto components, granted by the Automotive Research Association of India (ARAI) under the Ministry of Heavy Industries. The approval covers all seven scooters in Ola’s S1 Gen 3 line-up — including the 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.
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The company noted that both its Gen 2 and Gen 3 scooters are now PLI-certified. With the Gen 3 range accounting for the bulk of Ola’s current sales, management expects the certification to significantly enhance profitability beginning Q2FY26.
Another sentiment booster has been the buzz around a possible GST cut on entry-level two-wheelers and EVs. Additionally, reports that Niti Aayog has convened a meeting with leading two-wheeler manufacturers to accelerate the electrification of motorcycle sector lifted optimism this week.
Government estimates indicate electric scooters could make up as much as 80 percent of sales by 2030. However, penetration in motorcycles may reach only about 10 percent, keeping the overall two-wheeler electrification rate at roughly 36 percent — well short of policymakers’ ambitions. To bridge this gap, discussions are likely to focus on scaling up production, reducing upfront costs, exploring battery-swapping solutions and offering innovative financing models to make EV motorcycles more competitive.
Also read: Govt to begin work on smartphone PLI 2.0 to boost exports, competitiveness with China, Vietnam
Also, Ola founder Bhavish Aggarwal has reiterated the company’s ambition to capture 25–30 percent of India’s electric two-wheeler market. He said the company’s strategy of vertical integration, coupled with new product launches, will ensure long-term profitability as volumes scale. “Our mojo is still there,” Aggarwal remarked last week, expressing confidence in Ola’s ability to hold margins while chasing growth.
At about 10:20 am, shares of the company were trading at Rs 56.1, higher by 2.3 percent from the last close on the NSE.
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