Ola Electric Secures ₹366.78 Crore PLI Auto Incentive

Ola Electric has received an incentive worth ₹366.78 crore from the Ministry of Heavy Industries (MHI), Government of India under the the Production Linked Incentive Scheme for Automobile and Auto Components (PLI-Auto Scheme) for claims pertaining to FY 2024-25. The company has confirmed the same through a media release shared on the BSE. 

The approval pertains to the Demand Incentive based on the Determined Sales Value for the above-mentioned period. The funds will be disbursed through IFCI Limited, the appointed financial institution for the scheme. The incentive has been sanctioned in line with the prevailing terms and conditions of the PLI-Auto Scheme, as revised from time to time.

Commenting on the development, an Ola Electric spokesperson said, “The sanction of ₹366.78 crore under the PLI-Auto Scheme is a strong endorsement of Ola Electric’s manufacturing capabilities and our commitment to building world-class EV technology in India. This incentive recognises our sustained efforts in scaling domestic production, deepening localisation, and driving innovation across the electric mobility value chain.”

What is PLI Auto Scheme?

The PLI Auto Scheme was introduced by the Government of India with a sanctioned outlay of ₹25,938 crore for five years (FY2022-23 to FY2026-27) to promote domestic manufacturing in the automobile and auto components industry. It offers financial incentives to companies based on incremental sales of advanced automotive technology products produced in India.

To qualify, manufacturers are required to meet defined benchmarks related to domestic value addition, investment obligations, and sales performance. The scheme is designed to curb import reliance, encourage new investments, and strengthen India’s position as a globally competitive hub for automobile and component manufacturing.

Ola Electric commanded a substantial market share in the electric two-wheeler space, reaching around 35% in FY 2024. However, by late 2025, market share for the Bengaluru-based EV two-wheeler startup dropped significantly, with figures around 15-20%. The latest incentive from the MHI will certainly give a boost to Ola Electric’s future plans as the company plans to expand its electric two-wheeler portfolio both in scooter and motorcycle segments. 

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