Ola Electric continues to make significant strides in the electric vehicle (EV) industry, with its latest achievement being the PLI (Production-Linked Incentive) certification for two variants of its popular Ola S1 X scooter—the 3 kWh and 4 kWh models. This certification is a major milestone in Ola’s journey, reflecting its commitment to local manufacturing and contributing to India’s EV vision.
Ola S1 X PLI Certification: A Milestone in Localisation
In August 2024, Ola Electric, which recently went public, received PLI certification from the Automotive Research Association of India (ARAI) for its Ola S1 X models. Both the 3 kWh and 4 kWh variants have met the stringent criteria set by the Ministry of Heavy Industries (MHI), including 50% localisation. This achievement brings Ola Electric’s total number of PLI-certified models to four, including the Ola S1 Air and S1 Pro.
Boosting Revenue and Enhancing Manufacturing Strength
A spokesperson from Ola Electric commented on the significance of this certification, stating, “The S1 X 3 kWh and 4 kWh models contribute to nearly half of our revenues. With the PLI certification, we can further enhance our profitability. This recognition underscores our vertically integrated manufacturing capabilities and marks a significant step forward in advancing India’s EV industry.” The spokesperson also highlighted how the government’s Auto PLI Scheme will play a crucial role in strengthening local supply chains, promoting domestic manufacturing, and helping companies achieve economies of scale.
Financial Incentives Under the PLI Scheme
Ola Electric is now eligible to receive incentives under the PLI scheme for up to five consecutive financial years, starting from Fiscal 2024. The incentive rates range between 13% and 18% of the ‘determined sales value’ (DSV) of the certified products. This will undoubtedly provide a financial boost to the company as it continues to expand its EV offerings in the Indian market.
Advanced Chemistry Cell (ACC) Battery Storage PLI Award
In addition to the recent PLI certification, Ola Electric was awarded a 20GWh capacity under the government’s PLI scheme for Advanced Chemistry Cell (ACC) Battery Storage in March 2022. This award ensures that Ola Electric will receive incentives over a five-year period, beginning with the commissioning of its state-of-the-art Ola Gigafactory in Krishnagiri, Tamil Nadu.
The PLI certification for the Ola S1 X models is a testament to Ola Electric’s dedication to innovation, localisation, and contributing to India’s growing EV market. With the support of government incentives, Ola is well-positioned to strengthen its market presence and drive the future of electric mobility in India.
