Ola Electric Becomes First Indian 2W Automaker to Receive ₹73.7 Crore Under PLI-Auto Scheme

Ola Electric has received an incentive of ₹73.7 crore under the Production Linked Incentive (PLI) Scheme for Automotive and Auto Components (PLI-Auto Scheme). This makes it the first two-wheeler electric vehicle (EV) manufacturer in India to qualify for this benefit, as reported by Moneycontrol.

Overview of the PLI-Auto Scheme

The PLI-Auto Scheme, launched in September 2021, is a government initiative designed to boost domestic manufacturing in the automotive sector. With a budget allocation of ₹25,938 crore over five years, the scheme aims to:

• Reduce import dependency

• Strengthen India's position in the global EV supply chain

• Encourage the adoption of clean and sustainable mobility solutions

This incentive, based on Ola Electric’s sales for the financial year 2023-2024, marks a major achievement in the company’s mission to establish a strong local EV manufacturing ecosystem.

Ola Electric’s Market Leadership in EVs

Ola Electric has cemented its position as the market leader in the electric two-wheeler segment, achieving a 28% market share as of February 2025. The company’s Ola S1 series of electric scooters has been a key driver of this growth, making it a dominant player in India's fast-growing EV market.

Investments in R&D and Manufacturing

Over the years, Ola Electric has made substantial investments in research and development (R&D), battery innovation, and large-scale manufacturing. A crucial part of this effort is the Ola Futurefactory, one of the world’s largest two-wheeler EV production facilities. This investment underscores the company’s commitment to developing indigenous technology and enhancing production capacity.

Certification Under PLI Scheme

As of September 2024, Ola Electric has successfully certified five products under the PLI-Auto Scheme. To qualify, these products had to meet the strict minimum localization requirement of 50%, as set by the Ministry of Heavy Industries. This certification further solidifies Ola Electric’s role in India's self-reliant EV ecosystem.

Advanced Chemistry Cell (ACC) Battery PLI Scheme

In addition to the PLI-Auto incentive, Ola Electric was also awarded a 20GWh battery capacity allocation under the PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage in March 2022. This initiative is crucial for strengthening India’s EV battery manufacturing capabilities.

The company is eligible to receive additional incentives under the Cell PLI scheme over a five-year period, starting from the commissioning of its Ola Gigafactory in Krishnagiri, Tamil Nadu. This move is expected to enhance India's energy storage infrastructure and support the growth of electric mobility solutions.

Financial Performance: Revenue Decline and Losses

Despite these achievements, Ola Electric reported widening losses in the third quarter ended December 31, 2024:

• Losses increased from ₹376 crore in Q3 of the previous year to ₹564 crore.

• Revenue declined by 19.4%, reaching ₹1,045 crore for the quarter.

These financial setbacks highlight the challenges in scaling EV production while maintaining profitability. However, with strong government backing, an expanding product portfolio, and continued investments in technology, Ola Electric remains optimistic about its long-term growth.

Conclusion: A Transformative Phase for Ola Electric

The ₹73.7 crore incentive under the PLI-Auto Scheme is a significant milestone for Ola Electric and India's EV sector. As the first Indian two-wheeler EV manufacturer to receive this benefit, Ola Electric is setting new benchmarks for local production, sustainability, and innovation.

With aggressive investments in battery technology, manufacturing, and market expansion, the company is well-positioned to lead India's transition towards clean mobility. As it navigates financial challenges, Ola Electric’s focus on scalability, efficiency, and government-backed incentives will be key to its future success.