Ola Electric has secured a ₹95.81 crore incentive from the Ministry of Heavy Industries under the government’s Production Linked Incentive (PLI) scheme for the fiscal year FY27. This marks the third consecutive year the electric two-wheeler maker has received the incentive, following ₹73.74 crore for FY24 and ₹366.78 crore for FY25, according to inc42.com.
The PLI scheme provides financial incentives of up to 18% on sales to boost domestic manufacturing of advanced automotive technology products. Ola Electric’s spokesperson described the sanction as a strong endorsement of the company’s manufacturing capabilities and commitment to building EV technology in India. Alongside this, Ola Electric is pursuing up to ₹7,240 crore in battery cell incentives through its subsidiary Ola Cell Technologies Pvt Ltd, which has a revised five-year incentive window under the advanced chemistry cell PLI scheme.
The incentives come amid a decline in Ola Electric’s sales, with registrations dropping 20% to 13,085 units in July from 16,249 units the previous month. The PLI scheme aims to support domestic EV manufacturing and reduce reliance on imports, positioning companies like Ola Electric to scale production and technology development in a competitive market.
Ola Electric’s filing on August 12 detailed the potential cumulative incentives of up to ₹7,240 crore available to its battery subsidiary under the revised PLI scheme timelines, highlighting the government’s continued support for the company’s manufacturing expansion and innovation efforts.