Ola Electric has become the sole manufacturer of two-wheelers and exclusively electric vehicles to obtain PLI compliance certification for four of its products: S1 Air, S1 Pro, and both the 3 kWh and 4 kWh versions of S1 X. Previously, the company had received PLI certification for the S1 Air at the Auto PLI Conclave in January 2024.
On August 9th, Ola Electric achieved a significant milestone as its S1 X 3 kWh and S1 X 4 kWh models received the Production Linked Incentive (PLI) Scheme Compliance Certification from the Ministry of Heavy Industries. This certification, vital for both the automobile and auto components sectors, requires adherence to stringent localization criteria of 50%. This achievement underscores Ola Electric’s significant role in promoting India’s electric vehicle (EV) vision. As a result, Ola Electric is now the only two-wheeler and pure-play EV maker to hold PLI compliance certification for four products: S1 Air, S1 Pro, and both models of S1 X, having earlier secured a PLI certification for S1 Air in January 2024 at the Auto PLI Conclave.
A spokesperson from Ola Electric Mobility Limited highlighted the significance of this achievement by noting that the S1 X models represent nearly half of the company’s revenue, and with the PLI, they anticipate notable enhancements in their financial outcomes. The certification of both their premium and mass-market products demonstrates the company’s strong, vertically integrated manufacturing capabilities and signifies an important advancement in furthering India’s electric vehicle agenda. Additionally, the government’s ambitious Auto PLI Scheme is designed to strengthen local supply chains, enhance domestic manufacturing, and support companies in achieving economies of scale.
Further achievements include the Automotive Research Association of India (ARAI) granting certification after extensive testing and verification of component localization under the PLI scheme. Ola Electric will benefit from incentives for up to five years starting from fiscal 2024, with incentives ranging between 13% and 18% of the “determined sales value” (DSV) of compliant products.
Moreover, in March 2022, Ola Electric secured a 20GWh capacity allocation under the PLI scheme for Advanced Chemistry Cell (ACC) Battery storage. The company is slated to receive incentives for five years following the start of operations at the Ola Gigafactory in Krishnagiri, Tamil Nadu. These milestones not only enhance Ola Electric’s presence and capabilities within the EV market but also align with its commitment to improving local supply chains and expanding domestic manufacturing. The government’s PLI scheme is designed to support these efforts and promote sustained growth and development in India’s expanding EV sector.
