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Ola Electric secures PLI certification, paving the way for subsidies, boosting EV affordability
Industry News- Jan 08,24
This achievement marks Ola Electric as the first Indian electric two-wheeler (e2W) company to secure certification under the PLI scheme, with the ministry reportedly granting approval on December 27 after a four-month process.
Ola Electric, on its way to an initial public offering (IPO), has received approval for subsidies under the production-linked incentive (PLI) scheme from the Ministry of Heavy Industries (MHI). This achievement marks Ola Electric as the first Indian electric two-wheeler (e2W) company to secure certification under the PLI scheme, with the ministry reportedly granting approval on December 27 after a four-month process.
The PLI scheme aims to provide financial incentives to companies, promoting local production and reducing dependence on imports to enhance the competitiveness of products. Ola Electric met the eligibility criteria, including a minimum of 50% domestic value addition in its vehicles.
Reportedly, the PLI certification could enable Ola Electric to access benefits ranging from Rs 15,000 to 18,000 per unit. This financial support is anticipated to make electric vehicles more affordable, thereby driving increased adoption across the country.
Ola Electric currently holds a 33% market share, leading the electric two-wheeler segment, with competitors such as TVS Motor, Bajaj Auto, and Ather Energy following behind. It's noteworthy that other major players like Hero MotoCorp, TVS Motor Company, and Bajaj Auto have also submitted applications for the PLI scheme.
To qualify for the PLI scheme, e-scooter startups must make a minimum investment of Rs 1,000 crore. The PLI-Auto Scheme, sanctioned by the Centre in 2021 with a budget of Rs 25,938 crore over five years, aims to boost local production of Advanced Automotive Technology products, including electric vehicles and their components. It offers financial rewards, equivalent to 18% of eligible sales for electric vehicles and their parts.
Ola Electric
Ministry of Heavy Industries
Hero MotoCorp
TVS Motor
Bajaj Auto
Ather Energy
Advanced Automotive Technology
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