Ola Electric Receives ₹366.78 Crore Incentive from Indian Government Under PLI Scheme

Ola Electric has received a major financial boost from the Government of India under the Production Linked Incentive (PLI) scheme. The incentive aims to strengthen domestic EV manufacturing, support localization, and accelerate India’s journey toward becoming a global clean mobility hub.

Ola Electric Gets ₹366.78 Crore Incentive from Indian Government Under PLI Scheme

Government Approves Incentive Under PLI Framework

India’s leading electric two-wheeler manufacturer, Ola Electric, has received significant relief from the government. The company announced that the Ministry of Heavy Industries has granted it an incentive worth ₹366.78 crore under the Production Linked Incentive (PLI) scheme.

This PLI scheme applies specifically to automobiles and auto components, and Ola Electric has qualified for the benefit under the program.

The approval is linked to the demand incentive calculated on eligible sales value for the financial year 2024–25. The sanctioned amount of ₹366.78 crore will be released through IFCI Limited — the designated financial institution for the scheme. The approval has been granted in accordance with the updated guidelines and terms of the PLI-Auto Scheme.

A Significant Boost for Ola Electric

This development further strengthens Ola Electric’s position within India’s advanced automotive manufacturing ecosystem. It also reflects the company’s strong performance in large-scale production, localization, and vertically integrated manufacturing focused on EV technology.

Ola Electric Thanks the Government

Responding to the approval, an Ola Electric spokesperson said that the incentive of ₹366.78 crore under the PLI-Auto Scheme demonstrates the government’s trust in the company’s manufacturing capabilities.

They added that the incentive reinforces Ola Electric’s commitment to building world-class EV technology in India.

It also recognizes the company’s continuous efforts to:

• increase domestic production

• deepen localization

• drive innovation across the electric mobility value chain

Ola Electric remains fully aligned with the government’s vision to make India a global hub for advanced automobile manufacturing and clean mobility.

Objective of the PLI Auto Scheme

The PLI-Auto Scheme is a flagship initiative by the Government of India. Its key aims include:

• strengthening domestic manufacturing

• promoting advanced automotive technology

• enhancing India’s global competitiveness in the automobile and auto components sector

Why the PLI-Auto Scheme Matters

The scheme is designed to encourage:

• local production

• technology development

• value addition within India

Companies meeting the criteria receive incentives to expand manufacturing and innovation, especially in future-ready automotive technologies.

Performance of Ola Electric Shares

Ola Electric Mobility Limited shares closed at ₹35.30, registering a 1.58% gain on Wednesday.

However, market performance has remained volatile:

• Up 10.62% over the last 5 trading sessions

• Down 13.03% in one month

• Down 18.40% over six months

• Down 62.27% over one year

The company currently holds a market capitalization of ₹14,800 crore.