Ola Electric Secures ₹366.78 Crore PLI Incentive, Boosts ‘Make in India’ EV Push

In a significant boost to India’s electric vehicle (EV) sector, Ola Electric has announced the receipt of a sanction order for ₹366.78 Crore from the Ministry of Heavy Industries. The incentive falls under the central government's Production Linked Incentive (PLI) Scheme for Automobile and Auto Components for the financial year 2024-25.

This development cements Ola Electric's position as a frontrunner in the indigenous manufacturing of electric two-wheelers and components.

Key Highlights of the Incentive

• Total Amount: ₹366.78 Crore sanctioned for FY25.

• Scheme: PLI-Auto Scheme (Production Linked Incentive).

• Disbursement Body: IFCI Limited.

• Basis of Award: Determined Sales Value (DSV) for FY 2024-25, rewarding high domestic value addition.

Government Endorsement of Local Manufacturing

The PLI-Auto Scheme is one of the Government of India’s flagship initiatives designed to reduce import dependence and bolster domestic manufacturing capabilities. By securing this sanction, Ola Electric has successfully met the stringent criteria regarding localization (local sourcing of parts) and domestic sales volume.

The sanction authorizes the release of funds through IFCI Limited, validating Ola’s heavy investment in vertical integration—specifically its ability to manufacture critical components, including battery cells, within India at its Futurefactory in Tamil Nadu.

Ola Electric’s Response

Calling the incentive a "strong endorsement," the company emphasized its commitment to the government's vision of making India a global hub for advanced automotive technologies.

"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," an Ola Electric spokesperson stated. "This incentive recognizes our sustained efforts in scaling domestic production, deepening localization, and driving innovation across the electric mobility value chain."

Why This Matters for the Indian EV Market

This financial injection is expected to further strengthen Ola Electric's R&D capabilities, which currently span India, the UK, and the US. With the automotive industry shifting rapidly toward clean energy, government backing serves as a critical catalyst for companies aiming to scale operations and reduce vehicle costs for the end consumer.

The company currently operates one of India's largest integrated 2W manufacturing facilities and the Battery Innovation Centre (BIC) in Bengaluru, focusing on developing indigenous cell technology—a core requirement for long-term sustainability in the EV sector.