Ola Electric has filed a claim for approximately ₹400 crore in incentives under the Indian government's Production Linked Incentive (PLI) scheme. This claim is supported by eligible sales of around ₹3,000 crore for the fiscal year 2025.
The incentive, calculated at an estimated 13 to 14 percent of eligible sales, is expected to significantly bolster the company's financial standing and positively influence its financial performance in the upcoming quarters. Sources familiar with the matter highlight that this incentive will strengthen Ola Electric's liquidity position.
Ola Electric has emphasized its commitment to adhering to stringent localization and regulatory standards, which has facilitated its eligibility for the PLI scheme. The company has emerged as a leading player in the EV sector, achieving significant milestones in PLI certifications.
Notably, Ola Electric was the sole two-wheeler Original Equipment Manufacturer (OEM) to receive the PLI incentive in the previous year, marking a significant achievement for both the company and the broader electric vehicle industry. Building on this success, Ola Electric has continued to be the top performer in PLI-eligible sales within the two-wheeler category for two consecutive years.
In related news, Ola Electric recently secured PLI certification for its Gen 3 scooter portfolio. The Automotive Research Association of India (ARAI) granted this certification to all seven models in the Ola S1 Gen 3 scooter lineup. With this development, both Ola Electric's Gen 2 and Gen 3 scooter portfolios are now PLI-certified. The Gen 3 portfolio, which includes 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 models, constitutes a significant portion of the company's current sales. This certification is expected to enhance Ola Electric's profitability starting from the second quarter of fiscal year 2026.
Ola Electric has stated that securing PLI certification for its Gen 3 scooters is a crucial step toward achieving profitability. The company anticipates that this certification will directly strengthen its cost structure and margins, enabling sustainable growth in the future.
