Ola Electric Receives ₹73.7 Crore Incentive Under PLI Scheme

Ola Electric has secured an incentive of ₹73.7 crore under the Production Linked Incentive (PLI) scheme for Automotive and Auto Components. This makes Ola Electric the first electric two-wheeler manufacturer to receive such a benefit in India.

The amount is determined based on the company’s sales performance (i.e., the Determined Sales Value) during the fiscal year 2023–24. Additionally, companies must meet specific domestic value-addition criteria and investment thresholds to qualify.

The PLI scheme, launched in September 2021, aims to boost domestic manufacturing in the automotive sector and promote advanced, clean, and sustainable mobility solutions. The incentive is based on the company's sales for the financial year 2023-2024.

Ola Electric, led by Bhavish Aggarwal, is currently the market leader in the electric two-wheeler segment with a 28% share as of February 2025. The company has made significant investments in research and development, battery innovation, and large-scale manufacturing, including the Ola Futurefactory.

Ola Electric holds a 28% market share in the electric two-wheeler segment as of February 2025. The company has invested heavily in research and development, battery innovation, and large-scale manufacturing, including the Ola Futurefactory.

Ola Electric recently launched its first electric motorcycle, the Roadster X, with deliveries starting this month.

The incentive supports Ola Electric’s drive to scale up production at facilities like the Ola Futurefactory, which is designed to be one of the most advanced and sustainable two-wheeler plants in the world.

The company is investing heavily in battery technology to improve energy density, reduce charging times, and enhance overall performance. They are exploring solid-state batteries and other advanced materials to achieve these goals.

With this support, Ola has been able to reinvest in research and development for battery technology, fast charging solutions, and more efficient electric drivetrains. This is critical in their quest to lead the electric two-wheeler market both domestically and internationally.

The PLI Scheme, which was launched in September 2021, has a budget ₹25,938 crore over five years and aims to boost domestic manufacturing in the automotive sector and promote advanced, clean, and sustainable mobility solutions.

The scheme emphasizes electric vehicles, hydrogen fuel cell vehicles, and other advanced automotive technologies.

Incentives under the PLI scheme are part of a broader government strategy to reduce reliance on imports, strengthen domestic supply chains, and promote clean energy technologies across various sectors, thereby creating a favorable climate for high-tech, sustainable industries in India.