Ola Electric Seeks ₹400 Crore Incentives Under Auto PLI Scheme for FY25

Ola Electric has filed a claim of around ₹400 crore in incentives under the government’s Production-Linked Incentive (PLI) scheme for the automobile and auto components sector for FY25. The claim reflects the company’s strong performance in the electric two-wheeler space, where it has retained significant market share while expanding its product portfolio.

Ola Electric’s PLI Claim for FY25

According to a Moneycontrol report, Ola Electric submitted its claim based on eligible sales of nearly ₹3,000 crore for FY25. With the PLI incentive calculated at around 13–14% of sales, the expected benefit of ₹400 crore will strengthen the company’s liquidity position and provide a cushion for future investments.

The EV manufacturer sold 3.59 lakh units in FY25, translating into a 30% market share. This is slightly lower than FY24, when Ola Electric sold 3.29 lakh units but commanded a higher 35% share. Despite the decline in market share, higher sales volumes and PLI benefits are expected to drive positive momentum for the company.

PLI Scheme: Boosting India’s Auto Sector

Launched in 2021 with an outlay of ₹25,938 crore, the auto PLI scheme is designed to strengthen domestic manufacturing, reduce import reliance, and encourage advanced automotive technologies. Companies are required to meet localisation targets and comply with regulatory standards to qualify for incentives.

The scheme rewards incremental sales, meaning firms that consistently expand production and sales volumes benefit the most. For EV manufacturers like Ola Electric, the PLI framework is crucial in accelerating adoption and supporting profitability in a price-sensitive Indian market.

Ola Electric’s PLI Track Record

In FY24, Ola Electric became the first and only electric two-wheeler company to secure incentives under the PLI scheme. It received ₹73.74 crore for eligible sales made during FY23–24, highlighting its leadership in compliance and execution.

By filing the largest claim again in FY25, Ola Electric has reinforced its position as the top player in the auto PLI ecosystem. This consistency also strengthens investor confidence as the company looks to sustain growth amid increasing competition in the EV sector.

Gen 3 Scooters Drive Growth and Compliance

A significant factor behind Ola Electric’s PLI claim is the success of its Gen 3 scooter lineup. The company recently received compliance certification under the PLI scheme for this best-selling range, making it eligible for incentives of 13–18% of determined sales value until 2028.

The Gen 3 scooters form the bulk of Ola Electric’s volumes, ensuring that the PLI-linked benefits will have a direct and substantial impact on its profitability. The company described this certification as a “critical step towards profitability” and a milestone in its long-term growth plan.

Profitability Outlook and Market Impact

Ola Electric projects that PLI benefits will start reflecting in its financial performance from the second quarter of FY25. With incentives flowing in, the company expects its gross margins to rise to 35–40%. Moreover, it forecasts a full-year auto EBITDA (earnings before interest, taxes, depreciation, and amortization) above 5%.

The company is confident that its auto business will remain EBITDA positive from Q2 onwards, supported by steady demand, operational efficiency, and government incentives.

Reflecting this optimism, Ola Electric’s shares closed 3% higher at ₹60.79 on the NSE after the PLI claim was reported.

Conclusion

Ola Electric’s ₹400 crore PLI claim for FY25 underscores its leadership in the EV two-wheeler market and highlights the critical role of government incentives in shaping the future of India’s auto industry. With its Gen 3 scooters driving sales and compliance, and with profitability targets in sight, Ola Electric is poised to strengthen its position as a key player in the transition toward sustainable mobility.