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Ola Electric on Tuesday announced that it has received certification for compliance with the eligibility assessment requirements under the Production Linked Incentive (PLI) Scheme for the automobile and auto components sector for its Gen 3 scooter portfolio.
The certification has been granted by the Automotive Research Association of India (ARAI) under the aegis of the Ministry of Heavy Industries, Government of India, covering all seven models in the Ola S1 Gen 3 scooter line-up. With this development, Ola Electric's entire Gen 2 and Gen 3 scooter portfolio now stands PLI-certified. In an exchange filing the company said Ola Electric, has received Certification for Compliance with the eligibility assessment requirements under the Production Linked Incentive (PLI) Scheme for automobile and auto components sector. The Gen 3 scooter range includes the S1 Pro 3 kWh, S1 Pro 4 kWh, S1 Pro+ 4 kWh, S1 X 2 kWh, S1 X 3 kWh, S1 X 4 kWh, and S1 X+ 4 kWh. According to the company, this portfolio represents the majority of Ola Electric's current sales and the certification is expected to significantly enhance its profitability from the second quarter of FY26 onwards. The PLI certification makes Ola Electric eligible for incentives ranging between 13 per cent and 18 per cent of the determined sales value (DSV) until 2028. Spokesperson, Ola Electric Mobility Limited, said, "Securing PLI certification for our Gen 3 scooters, which form the bulk of our sales, is a critical step towards profitability. This will directly strengthen our cost structure and margins, enabling us to deliver sustainable growth. With our auto business targeted to turn EBITDA positive, the certification acts as a strong catalyst to achieve that goal while ensuring our customers continue to get the best-in-class EVs at highly competitive prices." This will provide a direct boost to the company's financial performance, especially in the growing electric two-wheeler market. The central government has approved the PLI-Auto Scheme on September 15, 2021, with a budgetary outlay of Rs 25,938 crore for a period of five years from FY 2022-23 to FY 2026-27. The incentive disbursement under the scheme taking place in the subsequent financial year, i.e. from FY 2023-24 to FY 2027-28. The PLI-Auto Scheme is aimed at boosting the manufacturing of Advanced Automotive Technology (AAT) products and is designed to promote deep localisation within the sector. The government also noted that the scheme is also expected to facilitate the creation of both domestic and global supply chains, strengthening India's position in advanced automotive manufacturing. The focus of the scheme is on Zero Emission Vehicles (ZEVs), which include battery electric vehicles and hydrogen fuel cell vehicles. (ANI)
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