Ola Electric becomes first 2-wheeler maker to bag PLI-Auto incentives
What's the story
Ola Electric has become the first two-wheeler EV maker to benefit from the Indian government's Production Linked Incentive Scheme for Automotive and Auto Component (PLI-Auto).
The company got an incentive of ₹73.7 crore under the scheme, which was launched in September 2021 with a budget outlay of ₹25,938 crore over five years.
The key motive is to boost domestic manufacturing in the automotive sector and promote advanced and clean mobility solutions.
Scheme objectives
PLI-Auto scheme aims to reduce import dependency
The PLI-Auto Scheme was launched with a vision to make India a key player in the global EV supply chain and cut down on import dependency.
The incentive awarded to Ola Electric is calculated on the basis of its sales for the financial year 2023-2024.
This is a major milestone in Ola Electric's journey to establish a strong local manufacturing ecosystem in India.
Market position
Market leadership and investment in R&D
Ola Electric, which sells the Ola S1 range of e-scooters, commands a 28% share in the electric 2W segment as of February 2025.
The company has also heavily invested in research and development (R&D), battery innovation, as well as large-scale manufacturing, including the Ola FutureFactory, one of the world's largest 2W EV production facilities.
Certification
Products certified under PLI scheme
As of September last year, Ola Electric has multiple products spanning the mass-market and premium 2W segments, certified under the PLI scheme.
These products comply with the strict minimum localization criteria of 50% as required by the Ministry of Heavy Industries.
This certification further cements Ola Electric's position as a leading player in India's electric vehicle industry.