Ola Electric has become the first 2W EV company to receive certification under the Production Linked Incentive (PLI) Scheme for automobiles and auto components. Reliable sources revealed that Ola Electric has successfully met the stringent eligibility assessment requirements outlined in the PLI Scheme, including a minimum of 50% domestic value addition to its vehicles. This certification positions Ola Electric as the sole EV 2W manufacturer eligible for benefits under the PLI auto scheme.
Industry experts estimate that the PLI certification will empower Ola Electric to access benefits ranging from INR 15,000 to 18,000 per unit. This financial boost is expected to enhance the affordability of electric vehicles, thereby driving increased penetration of EVs across the country.
Ola Electric achieved this certification milestone in an unprecedented timeframe of just under four months, setting a new speed record for any Indian company from the onset of mass production to the receipt of PLI certification. The coveted certification is conferred by The Automotive Research Association of India (ARAI) following rigorous product testing and scrutiny of the localization standards of components.
The PLI-Auto Scheme, approved by the Union Cabinet on 15.09.2021, earmarked a substantial budgetary outlay of INR 25,938 crore over a five-year period (FY2022-23 to FY2026-27). Geared towards boosting domestic manufacturing of Advanced Automotive Technology products, including electric vehicles and their components, the scheme provides financial incentives of up to 18% of eligible sales for electric vehicles and their components.
Earlier this month ARAI conferred upon the first PLI-AUTO certificate to Tata Motors in the M3 category for their 12 metre long fully built bus and CMVR type approval certificate was awarded to Tata Motors for India’s first green hydrogen fuel cell EV (Bus) for their model Starbus 4/12 FCEV and variants.
Ola Electric’s historic certification under the PLI Scheme marks a significant step forward in India’s pursuit of sustainable and innovative transportation solutions, positioning the company at the forefront of the burgeoning EV revolution.
