Ola Electric has received an incentive of ₹73.7 crore under the government’s Production Linked Incentive (PLI) Scheme for Automotive and Auto Components (PLI-Auto Scheme), making it the first two-wheeler electric vehicle (EV) manufacturer in India to benefit from the initiative.

Launched in September 2021, the PLI-Auto Scheme is designed to boost domestic manufacturing in the automotive sector while promoting advanced, clean, and sustainable mobility solutions. With a budget outlay of ₹25,938 crore over five years, the scheme aims to reduce import dependency and position India as a key player in the global EV supply chain.

The incentive, based on sales for the financial year 2023-24, marks a significant milestone in Ola Electric’s push for a robust local manufacturing ecosystem. Currently leading the electric two-wheeler market with a 28% share as of February 2025, the company offers the Ola S1 range of electric scooters.

Ola Electric has also made significant investments in research and development, 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, five of its products across the premium and mass-market segments are certified under the PLI scheme, meeting the Ministry of Heavy Industries’ localization criteria of 50%.

Additionally, the company was awarded a 20GWh capacity under the PLI scheme for Advanced Chemistry Cell (ACC) Battery Storage in March 2022. It is set to receive incentives under the Cell PLI scheme over five years from the commissioning of its Gigafactory in Krishnagiri, Tamil Nadu.

Despite these advancements, Ola Electric reported a widened net loss of ₹564 crore for Q3 FY25, compared to ₹376 crore in the same quarter last year, while revenue declined by 19.4% to ₹1,045 crore.

Be a part of Elets Collaborative Initiatives. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook , connect with us on LinkedIn and follow us on Twitter, Instagram.

"Exciting news! Elets technomedia is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!