Ola becomes only EV maker to secure PLI certification for four electric scooters
Ola Electric successfully met the minimum localisation criteria of 50% as mandated by the Ministry of Heavy Industries. The company stands to receive incentives ranging from 13% to 18% of the determined sales value of compliant products for up to five consecutive financial years starting from Fiscal 2024.
With this Ola Electric has become the only EV maker to get PLI compliance certification for four products: S1 Air, S1 Pro, and S1 X models in both 3 kWh and 4 kWh versions. The S1 Air received PLI certification earlier at the Auto PLI Conclave held in January 2024.
Following this announcement, shares of Ola Electric rose by 4.4% to INR 143.8 in Wednesday trading on the BSE.
A spokesperson for Ola Electric Mobility commented, “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 bottom line. Receiving the PLI certification for the 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.”
The PLI scheme, unveiled by the government in 2021 with a budgetary outlay of INR 25,938 crore, aims to boost domestic manufacturing of Advanced Automotive Technology (AAT) products and attract investments in the automotive manufacturing value chain. The scheme focuses on
