Ola Electric becomes first two-wheeler EV manufacturer to bag PLI incentives

Ola Electric has become the first two-wheeler electric vehicle (EV) manufacturer to receive incentives under the Production Linked Incentive (PLI) scheme for the automobile and auto components sector.

Ola Electric Technologies Pvt Ltd, a wholly owned subsidiary of Ola Electric Mobility Ltd, has received a sanction order from the Ministry of Heavy Industries for an incentive of ₹73.74 crore for the determined sales value of FY 2023-24, as per the terms of the PLI-Auto Scheme.

"We wish to inform you that, Ola Electric Technologies Private Limited, a wholly-owned subsidiary of Ola Electric Mobility Limited, has received a sanction order dated March 5, 2025, from the Government of India, Ministry of Heavy Industries," the company said in its disclosure to stock exchanges.

The sanctioned amount has been approved for disbursement through IFCI Limited, the designated nodal agency for the scheme, it added.

The incentive is based on sales for the financial year 2023-2024.

Launched in September 2021, the PLI-Auto Scheme aims to boost domestic manufacturing capabilities for Advanced Automotive Technology (AAT) products, with a focus on zero-emission vehicles such as battery electric and hydrogen fuel cell vehicles.

The scheme, which has a total budgetary outlay of ₹25,938 crore over five years, is intended to promote clean and sustainable mobility solutions in India.

The government revised the budget allocation for the scheme, setting aside ₹2,819 crore for 2025-26, down from ₹3,500 crore in the previous year.

Ola Electric, currently the market leader in the electric two-wheeler segment with a 28% share, has been investing in research and development, battery innovation, and large-scale manufacturing. The company operates the Ola Futurefactory, one of the world’s largest two-wheeler EV production facilities.