Ola Electric has announced that its popular S1 3kW and S1X 4kW scooters have qualified for subsidies under the Rs 25,938 crore Production Linked Incentive (PLI) auto scheme for fiscal year 2025. These models, which together account for nearly half of the company’s sales, are eligible for a subsidy ranging from 13% to 18%.
In its recent update, Ola Electric revealed that it has delivered over 120,000 scooters in the first quarter of FY 25. Bhavish Aggarwal, CEO of Ola Electric, shared the news on the social media platform X, noting that the S1X models have received Domestic Value Addition (DVA) certification under the PLI scheme. He highlighted that these models represent about 50% of the company’s orders and emphasized the impact this certification will have on advancing India’s electric vehicle sector.
The PLI scheme, which allows qualifying manufacturers to claim incentives over five years starting from fiscal year 2024, is a sales-based program. This means that incentives can only be claimed once production and sales are achieved.
Market analysts estimate that Ola Electric could gain between Rs 15,000 and 18,000 per unit, providing significant financial support to expand EV adoption while helping to offset its net loss of Rs 347 crore for the April-July quarter of FY 25, compared to a loss of Rs 267 crore in the same period of the previous fiscal year.
Ola Electric has become the only dedicated electric two-wheeler manufacturer in India to receive PLI certification for its models, including the S1 Air, S1 Pro, and S1X. The company received the certification for the S1 Air earlier this year.
The PLI scheme aims to enhance local supply chains and boost domestic manufacturing, with eligible companies set to receive incentives for up to five consecutive financial years, ranging from 13% to 18% of the product’s sales value.
Other applicants for the PLI scheme include established players like Hero MotoCorp, TVS Motor Company, and Bajaj Auto. However, Ola Electric remains the sole pure-play electric two-wheeler maker to secure approval, while companies such as Tata Motors, Mahindra & Mahindra, and Toyota Kirloskar Motors have also been approved for the scheme.
