Ola Electric has received an incentive of ₹366.78 crore from the Ministry of Heavy Industries (MHI) under the Production Linked Incentive Scheme for Automobile and Auto Components (PLI-Auto) for claims related to the 2024–25 financial year. The company informed stock exchanges about the approval through a regulatory filing, reports Acko Drive.
The incentive has been approved as a demand-based payout linked to the company’s determined sales value during the period. The funds will be released through IFCI Limited, the designated financial institution for implementing the scheme. The sanction has been made in accordance with the existing terms and conditions of the PLI-Auto Scheme, as amended from time to time.
Reacting to the development, an Ola Electric spokesperson said the incentive reflects recognition of the company’s manufacturing strength and its focus on developing advanced electric vehicle technology in India. The spokesperson added that the support under the scheme acknowledges Ola Electric’s efforts to scale up local manufacturing, increase localisation and promote innovation across the electric mobility ecosystem.
The PLI-Auto Scheme was launched by the central government with a total outlay of ₹25,938 crore for five years, from 2022–23 to 2026–27. The scheme aims to boost domestic manufacturing in the automobile and auto components sector by offering financial incentives based on incremental sales of advanced automotive technology products made in India. Companies qualifying under the scheme must meet specific criteria related to local value addition, investment commitments and sales targets. The initiative is intended to reduce dependence on imports, attract fresh investments and strengthen India’s global competitiveness in the auto manufacturing space.
Ola Electric held a strong position in the electric two-wheeler market, with a market share of about 35 per cent in 2023–24. However, by late 2025, its share declined to around 15–20 per cent amid rising competition. Industry watchers say the latest incentive from the ministry is expected to support the company’s expansion plans, as Ola Electric looks to broaden its electric two-wheeler offerings in both scooter and motorcycle segments.
