Ola Electric jumps 4% intraday on PLI nod for two scooters; stock up 89% since listing

Shares of Ola Electric Mobility Ltd surged over 4% to ₹143.5 apiece in early morning deals on the NSE on Wednesday, August 21, after the company received compliance certification for two of its electric scooter models under the Ministry of Heavy Industries' production-linked incentive (PLI) scheme.

In an exchange filing on August 20, the electric vehicle maker said that its scooters S1 X3 kWh and S1 X4 kWh received the Certification for Compliance under the production-linked incentive (PLI) scheme for automobile and auto components.

Ola Electric added that the models (S1 X3 kWh and S1 X4 kWh) have met the minimum localisation criteria of 50%, as mandated by the Ministry of Heavy Industries. The company stated that it had become the only electric two-wheeler manufacturer to receive the certification for compliance with the eligibility assessment requirements (PLI certificate) for four of its products– S1 Air, S1 Pro, S1 X (3 kWh, and 4 kWh).

The Automotive Research Association of India (ARAI) granted Ola Electric the PLI compliance certificate after testing the product and checking the localisation of the components. Under the scheme, the company is eligible for incentives for up to five consecutive financial years, starting from FY24. The incentive ranges between 13% and 18% of the “determined sales value” (DSV) of the products.

Ola Electric Mobility spokesperson said: “S1 X 3 kWh and S1 X 4 kWh together contribute to almost half of our revenues, and with the PLI now in place, we will be able to further improve our bottomline. Receiving the PLI certification for premium and mass-market products affirms our vertically integrated manufacturing strength, marking a significant achievement in advancing India's EV vision. The government's ambitious Auto PLI Scheme is poised to enhance local supply chains, foster domestic manufacturing, and assist companies in achieving economies of scale”

In January 2024, Ola Electric received the PLI compliance certificate for its S1 Air model at the Auto PLI Conclave organised in January 2024. It was awarded 20GWh capacity under the PLI scheme for Advanced Chemistry Cell (ACC) Battery storage in March 2022.

Ola Electric Mobility’s stock traded at ₹139.70 apiece on August 21, up by 1.39% on the NSE at around 9:30 AM. Ola Electric made its market debut on Friday, August 9. At today's session high, the stock was up nearly 89% over its issue price of ₹76.