Ola Electric Becomes the First Two-Wheeler EV Manufacturer to Secure PLI Incentives

Ola Electric, India's leading electric vehicle (EV) company, has reached a significant milestone by becoming the first two-wheeler EV manufacturer in the country to receive incentives under the Production Linked Incentive (PLI) Scheme for Automotive and Auto Component (PLI-Auto Scheme).

This achievement reinforces Ola Electric’s commitment to driving the nation’s EV revolution while strengthening domestic manufacturing capabilities.

According to a recent stock exchange filing, the company has been granted a total incentive of Rs 73.74 crore for the Determined Sales Value of FY 2023-24 under the scheme. This financial boost highlights the Indian government's dedication to fostering a self-reliant and sustainable EV ecosystem.

Government’s Push for Clean Mobility with the PLI-Auto Scheme

Launched in September 2021, the PLI-Auto Scheme is a key initiative of the Indian government designed to accelerate domestic manufacturing in the automotive sector while promoting the adoption of advanced, clean, and sustainable mobility solutions. With a total budget outlay of Rs 25,938 crore over five years, the scheme aims to reduce dependency on imports and establish India as a major hub in the global EV supply chain.

Under this scheme, Ola Electric has emerged as a frontrunner, leading the transition towards cleaner mobility solutions. The company’s strategic investments in research & development (R&D), battery innovation, and large-scale manufacturing have played a crucial role in securing this incentive.

Official Announcement of the Incentive

In an official stock exchange filing, Ola Electric Technologies Private Limited, a wholly-owned subsidiary of Ola Electric Mobility Limited, confirmed that it has received a sanction order dated March 5, 2025, from the Ministry of Heavy Industries, Government of India. The statement further highlighted:

"Rs 73.74 crore has been sanctioned towards the incentive for the Determined Sales Value of FY2023-24."

Ola Electric’s Growing Dominance in India’s EV Market

As a market leader in the electric two-wheeler segment, Ola Electric currently holds a 28% market share, making it the largest EV player in the industry. The company’s flagship Ola S1 range of electric scooters has gained widespread popularity across India, further solidifying its leadership position.

Ola Electric has also made substantial progress in manufacturing infrastructure, with the development of the Ola Futurefactory, which is one of the largest two-wheeler EV production facilities in the world. This state-of-the-art facility is expected to play a vital role in India’s ambition to become a global EV powerhouse.

Impact of the PLI-Auto Scheme on India’s EV Ecosystem

The PLI-Auto Scheme is a game-changer for India's electric mobility transformation. By offering incentives to domestic manufacturers, the government aims to:

• Encourage large-scale EV production in India.

• Reduce reliance on imported components and enhance local supply chains.

• Boost investments in battery technology and sustainable energy solutions.

• Promote job creation and skill development within the EV sector.

Ola Electric’s success under this scheme serves as an inspiration for other manufacturers, demonstrating how leveraging government initiatives can accelerate innovation and growth in the industry.

The Road Ahead: Strengthening India’s EV Future

With increasing government support and rising consumer adoption of EVs, India is well on its way to becoming a global leader in sustainable transportation. Ola Electric’s achievement under the PLI-Auto Scheme marks a significant step in this journey, highlighting the company’s role in shaping the future of mobility in India.

As the country continues to push for greater EV adoption and infrastructure development, Ola Electric’s latest milestone underscores its pivotal contribution to India's clean energy transition. With an ever-expanding footprint in the industry, the company is set to redefine sustainable mobility on both national and international levels.