Ola Electric, led by Bhavish Aggarwal, has filed a claim of about ₹400 crore under India’s Production Linked Incentive (PLI) scheme for automobile and auto components for FY25. The claim follows “eligible sales” of roughly ₹3,000 crore, with Ola expecting an incentive rate of 13–14% under the scheme.
What This Means
The PLI scheme for cars and parts, launched in 2021 (with a budget of ~₹25,938 crore), aims to increase domestic manufacturing and reduce dependence on imports. Ola Electric was the only electric two-wheeler OEM to secure incentives under the scheme in FY24 and remains a frontrunner for FY25 as well.
In addition, Ola has secured certification for PLI eligibility for its Gen 3 scooter portfolio, including the S1 line-up, which represents a major portion of its sales. This could help support margins from Q2 FY26 onward.
Financial & Strategic Impact
The payout under this claim is expected to provide Ola Electric with a significant liquidity boost. With eligible sales at ₹3,000 crore, this incentive is meaningful for improving financial performance and enabling further investment.
Also, earlier in FY25, Ola had already received ~₹73.7 crore under the auto PLI scheme. Filing this larger claim signals growing momentum and confidence in India’s EV manufacturing policy framework.
Final Take
Ola Electric’s substantial PLI claim underscores how government policy can accelerate scale, competitiveness, and profitability in the clean mobility space. As EV adoption rises, the ability to leverage incentives like PLI will increasingly differentiate winners.
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