Ola Electric Secures PLI Certification, Boosting Profitability Prospects

Ola Electric has earned PLI certification for its Gen 3 scooters under India's Production Linked Incentive scheme. This achievement allows the company to receive incentives on its sales, predicted to enhance profitability by FY26. The certification is part of a government effort to promote advanced automotive manufacturing.

On Tuesday, Ola Electric announced it has secured crucial certification for its Gen 3 scooter line-up under the Production Linked Incentive (PLI) Scheme. This certification, granted by the Automotive Research Association of India, marks compliance within the automobile and auto components sector, covering all seven models of the Ola S1 Gen 3 series.

According to the company, both the Gen 2 and Gen 3 scooter ranges now fully comply with PLI standards. Notably, the Gen 3 line includes models such as the S1 Pro 3 kWh and S1 Pro+ 4 kWh, which make up a significant portion of Ola's sales. The certification is projected to considerably boost profits from the second quarter of FY26 onwards.

Under the PLI Scheme, Ola Electric is eligible for incentives ranging from 13% to 18% of its determined sales value until 2028. The scheme, introduced on September 15, 2021, with a budget of Rs 25,938 crore, aims to bolster the manufacturing of Advanced Automotive Technology and promote deep localization, especially in the zero-emission vehicle sector.

(With inputs from agencies.)