Rs 73.74 Crore Sanctioned Under PLI Scheme! Major Win for India’s Top EV Brand!
Government Incentive Boosts EV Leader's Growth Plans, Paving the Way for Market Expansion and Innovation!
Ola Electric Technologies Private Limited, a wholly-owned subsidiary of Ola Electric Mobility Limited, has received a sanction order from the Ministry of Heavy Industries, Government of India. The order, dated March 5, 2025, pertains to the release of a Demand Incentive to IFCI Limited for disbursement to Ola Electric Technologies under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components.
Incentive Details
The incentive of Rs 73,74,36,612 (Rupees Seventy-Three Crores Seventy-Four Lakhs Thirty-Six Thousand Six Hundred and Twelve) has been sanctioned for the Determined Sales Value of FY 2023-24. The payment is aligned with the terms of the PLI-Auto Scheme, which aims to boost manufacturing and support growth in the auto sector.
Financial Performance and Market Position
Despite a revenue dip in Q3 FY25, Ola Electric saw improved gross margins and a strong performance in January 2025, reclaiming its top market position. The company aims to achieve a market share of 30 to 35 per cent by the end of the current quarter, bolstered by new product launches and expanded distribution.
Product and Battery Strategy
Ola Electric has introduced new products, including the Gig, Gig+, and Gen 3 models, alongside the Roadster X range of motorcycles. The company is also focusing on in-house battery cell production, with commercialization expected in Q1 FY26. The new 4680 cells promise better energy density and cost efficiency.
Service and Expansion Initiatives
Service times have significantly improved, with average turnaround reduced to 1.1 days. The distribution network now boasts around 4,000 touchpoints across India, enhancing market penetration and customer reach.
Future Investments and Growth Outlook
The company is optimistic about growth, driven by innovative products, better service quality, and a wider distribution network. Capex for Q3 stood at Rs 300 crores, with future investments of Rs 500-1,000 crores planned for battery cell expansion and scaling automotive production.
Founded in 2017, Ola Electric Mobility Limited is a leading player in the electric vehicle sector, manufacturing EVs and core components at its Ola Futurefactory.
Disclaimer: This article is for informational purposes only and not investment advice.