Ola Electric bags PLI Certification for its Gen 3 scooter portfolio

Ola Electric on Tuesday said it has secured Compliance Certification under the Production Linked Incentive (PLI) scheme for the automobile and auto components sector for its Gen 3 scooter lineup.

This certification was granted by the Automotive Research Association of India (ARAI) under the aegis of the Ministry of Heavy Industries, Government of India to all of the seven Ola S1 Gen 3 scooters.

With this development, Ola Electric’s Gen 2 and Gen 3 scooter portfolio now stands PLI-certified. The Gen 3 portfolio includes S1 Pro 3 kWh, S1 Pro 4 kWh, S1 Pro+ 4 kWh, S1 X 2 kWh, S1 X 3 kWh, S1 X 4 kWh and S1 X+ 4 kWh.

Shares of Ola Electric Mobility rose as much as 1.8 per cent to Rs 50.38 on BSE after the company announced that it has received the certification.

The company expects the certification to significantly enhance Ola Electric’s profitability from Q2 FY26 onwards.

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“Securing PLI certification for our Gen 3 scooters, which form the bulk of our sales, is a critical step towards profitability. This will directly strengthen our cost structure and margins, enabling us to deliver sustainable growth,” said a spokesperson of the company. The PLI certification makes Ola Electric eligible for incentives ranging from 13% to 18% of the determined sales value (DSV) until 2028.Recently, the EV manufacturer order strategically reallocated funding for organic growth initiatives, general corporate purposes, and debt repayment during its first Annual General Meeting.After the reallocation of funds, the unutilised amount is as follows: Rs 1,049 crore for R&D investment, Rs 901 crore for organic growth initiatives, Rs 395 crore for debt repayment/prepayment, and Rs 248 crore for general corporate purposes.

Apart from the approval for reallocation of IPO proceeds, shareholders also passed several other key resolutions at the AGM.

Ola Electric Mobility went public on August 9, 2024.

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