Electric vehicle maker Ola Electric Mobility has received a major boost from the Indian government after the Ministry of Heavy Industries sanctioned incentives worth ₹366.78 crore under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components for claims related to FY25.
In a regulatory filing dated December 25, Ola Electric said the sanction order was issued in favour of its wholly owned subsidiary, Ola Electric Technologies Private Limited. The approval pertains to demand incentives linked to the company’s determined sales value for the financial year ended March 2025.
The sanctioned amount will be disbursed through IFCI Limited, the designated financial institution responsible for payouts under the PLI-Auto scheme. The release of funds will be subject to the applicable terms and conditions of the scheme, as amended from time to time.
Ola Electric said the incentive reflects its execution strength across scale, localisation and technology-led vertically integrated manufacturing, which are core pillars of the PLI-Auto framework. The scheme aims to encourage domestic manufacturing of advanced automotive technologies while improving India’s global competitiveness in the auto and auto components sector.
Commenting on the development, an Ola Electric spokesperson said the approval is a strong validation of the company’s manufacturing and innovation capabilities. “The sanction of ₹366.78 crore under the PLI-Auto Scheme is a strong endorsement of Ola Electric’s commitment to building world-class EV technology in India. It recognises our sustained efforts in scaling domestic production, deepening localisation, and driving innovation across the electric mobility value chain,” the spokesperson said.
Operationally, Ola Electric continued to scale its electric two-wheeler business during FY25. The company reported deliveries of 3,59,221 electric scooters in the fiscal year, compared to 3,29,549 units in FY24, underscoring steady demand despite a competitive EV market.
The PLI-Auto Scheme is a flagship government initiative designed to attract investments, promote advanced automotive technologies, and support India’s ambition to emerge as a global hub for clean mobility and next-generation vehicle manufacturing.
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