Ola Electric Tech Receives First ICAT PLI Automotive Certificate

Ola Electric Technologies was granted the PLI-Automotive Certificate by the automotive testing agency International Centre for Automotive Technology on Monday as part of the production-linked incentive (PLI) program.

According to a statement from the International Centre for Automotive Technology (ICAT), Ola Electric's Battery Electric Vehicle - 2W (Ola S1 Pro Gen2) has successfully met the stringent criteria for the Automotive PLI (Production Linked Incentive) certificate.

This achievement underscores Ola Electric's dedication to advancing the indigenization of advanced automotive technology products.

The vehicle's compliance with the minimum DVA (Domestic Value Addition) requirement of 50 percent signifies a significant milestone in bolstering local manufacturing and fostering self-reliance in the automotive sector.

Ola Electric's commitment to enhancing domestic value addition reflects a strategic approach towards promoting innovation and sustainability in the burgeoning electric vehicle market.

Ola S1 Pro (Gen2) Two-Wheeler Eligible for PLI Incentives

The Ola S1 Pro (Gen2) two-wheeler, which has been operating since September 2023, will now be eligible for PLI program incentives as of the certificate's issuing date, according to a top Ola Electric official.

"With this certificate, which has gone through a process of due diligence, OLA will now be entitled to a Production Linked Incentive (PLI) payable by the Ministry of Heavy Industries," Saurabh Dalela, the director of ICAT, told P

One of the branches of the Ministry of Heavy Industries' National Automotive Board (NAB) is ICAT, Manesar. The two main testing organizations in the nation are ARAI (Automotive Research Association of India) and ICAT.

PLI Plan: Ola Electric's Incentive Tied to Sales Volumes

According to Ministry of Heavy Industries Additional Secretary Hanif Qureshi, the amount of money Ola Electric will receive under the PLI plan for cars and auto parts hinges on sales volumes.

The scheme's top ceiling is set at Rs 25,938 crore, which equates to 25% of the scheme's total allocation.

Presently, incentive claims under the PLI scheme for cars and auto components are disbursed on an annual basis. This approach underscores the government's strategy to incentivize and support manufacturers based on their sales performance, thus encouraging growth and competitiveness within the automotive industry.

The flexibility of tying incentives to sales volumes aligns with the overarching goal of driving increased domestic manufacturing and investment in the sector.

Consequently, in 2024–2025, the enterprises that receive certifications in 2023–2024 can submit claims for compensation incentives.