Ola Electric To Get ₹73.7 Crore Under PLI-Auto Scheme

Bengaluru-based Ola Electric has become the first electric two-wheeler manufacturer to receive incentives under the Production Linked Incentive (PLI) scheme for Automotive and Auto Components. As per a stock filing released yesterday, the company revealed that it has been granted ₹73.77 crore, that was calculated based on the Determined Sales Value in the financial year 2023-24. 

This PLI-Auto Scheme was launched in 2021 with a budget outlay of ₹25,938 crore for five years. Its main aim is to boost domestic manufacturing in the automotive sector and promote adoption of EVs. In the process, it will also help reduce our dependence on imports and position the country as a global EV supply chain. 

Besides this incentive gain, Ola Electric has also decided to come up with a way to save more money by transferring the vehicle registration process to in-house. The company estimates that it will be able to save one-fifth revenue that went away to vendor Rosmerta Digital Service Pvt. Ltd., which used to charge ₹1,500-₹1,800 to register one electric scooter. However, on the other hand, Ola Electric is yet to settle its dues of ₹17-18 crore with this vendor. In addition to that, earlier this month Ola Electric also laid off over 1,000 employees, again to reduce cost and improve efficiency. 

2024 saw Ola Electric grab headlines for all the wrong reasons. The company was grappled by product and service centre issues, wherein the marque even hired bouncers to safeguard its establishments spread across the country. This led to losses of ₹564 crore, which further widened its net loss by a significant margin. To make situations worse, the Central Consumer Protection Authority also issued notices to Ola challenging its claim to settling 99 per cent of the complaints that were filed with the jurisdiction body. 

However, 2025 might see the Bengaluru-based EV maker improve. The brand kickstarted its 2025 campaign by launching its debut range of electric motorcycles – Roadster. In addition to that, Ola Electric also updated its S1 portfolio by introducing a brand new platform, with the addition of new features. While legacy manufacturers Bajaj Auto and TVS Motor Company, have caught up to Ola by selling more electric two-wheelers, despite a small portfolio – the launch of brand new two-wheelers, and the latest steps to safeguard its financial affair, should help Ola Electric sort out its issues much better.