Ola Electric receives Rs 73.7 crore incentives under PLI-Auto scheme, becoming the first 2W auto maker in India to qualify

File

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Ola Electric has received an incentive of Rs 73.7 crore under the government's Production Linked Incentive (PLI) Scheme for Automotive and Auto Component (PLI-Auto Scheme), becoming the first two-wheeler automotive electric vehicle (EV) manufacturer to benefit in India, Moneycontrol has learnt.

Launched in September 2021, the PLI-Auto Scheme aims to boost domestic manufacturing in the automotive sector and promote the adoption of advanced, clean, and sustainable mobility solutions. With a budget outlay of Rs 25,938 crores over five years, the scheme is targeted towards reducing dependency on imports and positioning the country as a key player in the global EV supply chain.

This incentive, based on sales for the financial year 2023-2024, marks a notable milestone in Ola Electric's journey in developing a robust local manufacturing ecosystem in the country. The company, which offers Ola S1 range of electric scooters, is currently the market leader in the electric two-wheeler segment with a 28 percent share in February 2025.

In recent years, Ola Electric has also made significant investments in research and development (R&D), battery innovation, and large-scale manufacturing, including the Ola Futurefactory, one of the world’s largest two-wheeler EV production facilities.

As of September 2024, Ola Electric has five products across the premium and mass-market 2W segments that are certified under the PLI scheme, meeting the stringent minimum localization criteria of 50 percent as mandated by the Ministry of Heavy Industries.

Ola Electric has also been awarded 20GWh capacity by the government under its PLI scheme for Advanced Chemistry Cell (ACC) Battery storage in March 2022. The company is eligible to receive incentives under the Cell PLI scheme over a five-year period from the date of commissioning of the Ola Gigafactory in Krishnagiri, Tamil Nadu.

For the third quarter ended December 31, 2024, Ola Electric saw its losses widen to Rs 564 crore from Rs 376 crore in the same quarter last year. Revenue also declined by 19.4 percent to Rs 1,045 crore for the quarter.