Ola Electric has secured a ₹95.81 crore incentive from the Ministry of Heavy Industries under the government’s Production Linked Incentive scheme for automobiles. The incentive relates to FY27 and marks the third consecutive year that the electric two-wheeler maker has received support under the programme.
Under the PLI-Auto scheme, eligible manufacturers can receive incentives of up to 18% on sales of advanced automotive technology products, aimed at encouraging domestic manufacturing. Ola Electric had previously received ₹73.74 crore for FY24 and another ₹366.78 crore for FY25, making the latest sanction part of a broader government-backed manufacturing push.
The company is also pursuing significantly larger incentives under the advanced chemistry cell programme. Its battery subsidiary, Ola Cell Technologies, could potentially claim cumulative incentives of up to ₹7,240 crore after the government revised the programme timeline and provided a five-year incentive window. Ola has increasingly focused on building more of its EV technology and battery supply chain locally.
The incentive comes at a challenging time for Ola Electric’s core scooter business. Vehicle registrations fell 20% month-on-month to 13,085 units in July, while its market share slipped to around 7%. The company recently launched its S1Z electric scooter range powered by its locally developed 46-series LFP Bharat Cell as it looks to regain momentum in the increasingly competitive electric two-wheeler market.
Ola is also widening its business beyond electric scooters into energy storage, recently launching battery energy storage products for residential, industrial and utility-scale applications. Meanwhile, its consolidated net loss narrowed 22% year-on-year to ₹336 crore in the latest reported quarter, even as operating revenue declined sharply. For Ola Electric, the latest PLI incentive provides support for its local manufacturing strategy, but turning that technological investment into stronger sales will remain the bigger test.
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