The Automotive Research Association of India (ARAI) awarded the certification following product testing and verification of component localization standards, according to the statement.
Ola Electric announced on Wednesday that it had obtained a domestic value addition certificate under the automobile and auto component industry’s production-linked incentive (PLI) scheme. The company met the required 50% domestic value addition (DVA) criteria, as stipulated by the Union Ministry of Heavy Industries, as part of the PLI scheme. This certification was issued by the Automotive Research Association of India (ARAI), following rigorous product testing and evaluation of the components’ localization standards. Ola Electric also noted it is the first Indian two-wheeler company to receive the DVA certificate under the PLI scheme.
A spokesperson for Ola Electric described the PLI certification as a confirmation of the company’s comprehensive manufacturing capabilities and a crucial step in promoting clean mobility in India. They further commented that the government’s auto PLI scheme is instrumental in localizing supply chains, enhancing domestic manufacturing, and aiding companies in achieving scale economies.
Ola Electric is set to receive incentives under this scheme for up to five consecutive financial years, starting from FY24. These incentives will vary between 13% and 18% of the determined sales value (DSV).
