Ola Electric receives PLI certification for EVs: Why it's significant
Ola Electric has made history as the first Indian electric two-wheeler company to be certified under the Production Linked Incentive (PLI) Scheme for automobiles and auto components. The Automotive Research Association of India (ARAI) granted this certification after thoroughly testing the EV maker's products and examining their localization standards. As a result, Ola Electric is now the only electric two-wheeler manufacturer eligible for benefits under the PLI auto scheme.
Meeting stringent eligibility requirements and financial benefits
Ola Electric met the strict requirements of the PLI Scheme, which includes a minimum of 50% domestic value addition to its vehicles. Experts believe that this certification could provide the automaker with benefits ranging from Rs. 15,000 to Rs. 18,000 per unit. This financial support is expected to make electric vehicles more affordable, leading to a higher adoption rate throughout India.
Ola bagged the certificate in record time
Ola Electric secured this certification in just under four months, setting a new record for any Indian company from the start of mass production to receiving PLI certification. The PLI Auto Scheme, approved by the Union Cabinet in 2021, allocated a budget of Rs. 25,938 crore over five years (FY2022-23 to FY2026-27) to promote domestic manufacturing of advanced automotive technology products. This groundbreaking certification represents a significant stride in India's quest for sustainable and innovative mobility solutions.
