Ola Electric has created history by becoming India’s first two-wheeler electric vehicle (EV) producer to get a government incentive under the Production Linked Incentive (PLI) Scheme for Automotive and Auto Components (PLI-Auto Scheme). It has been awarded Rs 73.7 crore on its 2023-2024 financial year sales, further solidifying its position of leadership in the EV segment.

Boost for Domestic EV Manufacturing

Introduced in September 2021, the PLI-Auto Scheme is intended to encourage local manufacturing in the auto industry and fast-track the uptake of clean, advanced, and sustainable mobility solutions. With an outlay of Rs 25,938 crore over five years, the scheme is intended to minimize dependence on imports and make India a major player in the global EV supply chain. The incentive provided to Ola Electric is a notable milestone in the company’s mission to establish a strong local EV ecosystem.

Ola Electric’s Market Dominance

With Bhavish Aggarwal at the helm, Ola Electric has become the leader in the Indian electric two-wheeler market, with a 28% market share in February 2025. Ola S1, the company’s line of electric scooters, has been a key to success, providing high-performance, affordable, and green alternatives to traditional petrol scooters.

Over the past few years, Ola Electric has made significant investments in research and development (R&D), battery technology, and mass-scale manufacturing. Its cutting-edge Ola Futurefactory is among the world’s largest electric two-wheeler production facilities, playing a major role in producing and promoting electric mobility in India.

PLI Certification and Localization Efforts

As of September 2024, Ola Electric had five products in the premium and mass-market two-wheeler categories certified under the PLI scheme. The firm was able to meet the very high localization norms of 50% prescribed by the Ministry of Heavy Industries, demonstrating its seriousness about producing crucial EV components locally.

Ola Electric has also obtained a 20GWh capacity under the government’s PLI scheme for Advanced Chemistry Cell (ACC) battery storage. The company will be entitled to incentives under this scheme for five years from the commissioning date of its new Ola Gigafactory in Krishnagiri, Tamil Nadu.

Financial Performance and Future Prospects

Even with its market leadership, Ola Electric has struggled financially. For the quarter ended December 31, 2024, the company reported a larger net loss of Rs 564 crore, from Rs 376 crore in the corresponding quarter last year. Revenue fell 19.4% to Rs 1,045 crore for the quarter as well. But with rising government incentives and its aggressive growth strategy, the company is bullish on future growth.

The Road Ahead

Ola Electric’s recent success under the PLI scheme highlights its central position in India’s electric vehicle revolution. With increasing demand for electric mobility, government subsidies, and constant improvements in battery technology, the company is positioned to propel India towards a clean and self-reliant electric vehicle future.

The Rs 73.7 crore incentive under the PLI-Auto Scheme is likely to further support Ola Electric’s push to expand production, enhance localization, and continue to lead the rapidly changing electric two-wheeler industry. With its innovation and sustainability focus, Ola Electric is poised to transform the future of mobility in India.

Conclusion

The ₹73.7 crore incentive for the PLI-Auto Scheme further strengthens Ola Electric’s leadership role in India’s EV transition. The firm’s R&D investments in battery technology and scale production of the vehicle highlight its drive for innovation as well as sustainability. Yet, the financial struggles are still in place, and the next few years will be pivotal in determining Ola Electric’s future as a market leader in the fast-changing EV ecosystem. With sustained government backing and planned growth, Ola Electric can lead India’s shift towards cleaner mobility solutions.

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