Sparking market optimism for Ola Electric, fresh PLI approval worth almost ₹3.67 billion lifts its EV ambitions, validating its manufacturing push and localisation drive.
Ola Electric has secured government approval for incentives worth almost ₹3.67 billion (₹3.6678 billion) under the Production-Linked Incentive (PLI) scheme for the auto sector. According to the company, the sanction relates to demand incentives for the assessed sales value for FY25 and highlights the company’s progress in scaling advanced automotive production in line with national policy priorities.
The Ministry of Heavy Industries issued the sanction order through IFCI Limited, the designated institution for disbursing funds under the PLI-Auto scheme. Ola Electric said the approval has been granted in accordance with the programme’s applicable terms and evolving guidelines.
The company noted that the incentive underscores its contribution to India’s EV ecosystem, reinforcing its capabilities in localisation, large-scale production and vertically integrated, technology-driven manufacturing.
It reiterated its support for the government’s ambition to position India as a global hub for advanced clean mobility technologies.
The incentive sanction follows Ola Electric’s earlier compliance certification under the PLI scheme in August, which covered its Gen 3 electric scooter platform. The company continues to expand its manufacturing footprint and strengthen domestic supply chains in a rapidly evolving EV landscape.
Following the announcement, the company’s shares gained more than 5 per cent on 26 December, rising to ₹37.25 apiece and extending gains for a second straight session. Investor sentiment improved as the approval signalled operational execution and policy backing at a time when the stock has seen significant volatility.
Despite recent gains, Ola Electric’s share price has remained sharply lower over the past year, even as rival Ather Energy has posted strong market performance since its listing. However, the latest policy support is seen as a positive development for Ola Electric’s growth trajectory in India’s electric mobility sector.
