Ola Electric Seeks ₹400 Crore PLI Incentive Boost

Ola Electric, a frontrunner in India’s electric vehicle revolution, has submitted a substantial claim of approximately Rs 400 crore under the government’s Production-Linked Incentive (PLI) scheme, sources revealed on Monday. This move highlights the company’s adherence to stringent localization norms and regulatory standards, positioning it as a key player in boosting domestic manufacturing.

Industry insiders indicate that the claim is based on eligible sales of around Rs 3,000 crore for the fiscal year 2025 (FY25), with the incentive calculated at an impressive rate of 13 to 14 percent. This financial windfall is anticipated to bolster Ola’s liquidity, providing a much-needed cushion amid the competitive EV landscape and enhancing its overall financial health in the upcoming quarters.

Ola’s achievement is particularly noteworthy as it stands alone among two-wheeler Original Equipment Manufacturers (OEMs) to secure PLI incentives last year, a testament to its innovative edge and commitment to scaling up production. For the second year running, Ola has topped the charts in PLI-eligible sales within the two-wheeler segment, solidifying its leadership in driving India’s shift towards sustainable mobility.

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Adding to its successes, Ola Electric recently obtained certification confirming compliance with PLI eligibility for its Gen 3 scooter lineup, encompassing the entire S1 series. As the Gen 3 models dominate the company’s current sales, this certification is expected to drive profitability starting from the second quarter of FY26, enabling further investments in R&D and market expansion.

The PLI scheme, launched to promote self-reliance in electronics and auto components, has been instrumental in accelerating India’s EV adoption. Ola’s proactive engagement with the program not only underscores its operational excellence but also aligns with national goals of reducing import dependency and fostering green technology. With this incentive, Ola is well-poised to intensify its market presence, innovate on affordable electric scooters, and contribute to India’s ambitious target of 30 percent EV penetration by 2030.

As the EV sector heats up with rivals like Ather and TVS vying for share, Ola’s strategic wins could reshape the competitive dynamics, offering a blueprint for other manufacturers to follow in leveraging government support for growth.

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