Indian govt sanctions Rs 366.78 crore PLI-Auto incentive for Ola Electric

Ola Electric Mobility said the Ministry of Heavy Industries has sanctioned incentives worth Rs 366.78 crore under the Indian government's Production Linked Incentive Scheme for Automobile and Auto Components (PLI-Auto Scheme), for claims pertaining to FY25.

In a regulatory filing dated December 25, the EV maker said the sanction order was issued in favour of its wholly owned subsidiary, Ola Electric Technologies Private Limited.

The approval relates to demand incentives linked to the determined sales value recorded during the financial year ended March 2025. The sanctioned amount will be disbursed through IFCI Limited, the designated financial institution for payouts under the PLI-Auto scheme, and released in accordance with the applicable terms and conditions of the scheme, as amended from time to time.

The company said the incentive reflects its execution across scale, localisation, and technology-led vertically integrated manufacturing.

Commenting on the development, an Ola Electric spokesperson said, “The sanction of Rs 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. This incentive recognises our sustained efforts in scaling domestic production, deepening localisation, and driving innovation across the electric mobility value chain. We remain committed to supporting the Government of India’s vision of making India a global hub for advanced automotive manufacturing and clean mobility.”

The PLI-Auto Scheme is a flagship initiative aimed at strengthening domestic manufacturing, encouraging the adoption of advanced automotive technologies, and enhancing India’s global competitiveness in the automobile and auto components sector.

Operationally, Ola Electric reported deliveries of 3,59,221 electric two-wheelers in FY25, up from 3,29,549 units in the previous fiscal.