PLI Incentive Approved
Ola Electric has received a major financial boost from the Government of India. The Ministry of Heavy Industries has issued a sanction order approving an incentive of ₹366.78 crore for the company under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components. The approval was granted on December 25, 2025, and relates to Ola Electric’s claims for the financial year 2024–25.
This incentive has been sanctioned as a Demand Incentive based on Ola Electric’s determined sales value for FY 2024–25. The payment will be released through IFCI Limited, which is the designated financial institution responsible for disbursing funds under the PLI-Auto Scheme. The approval follows all applicable terms and conditions of the scheme, as revised by the government from time to time.
Reacting to the development, an Ola Electric spokesperson said the incentive is a strong recognition of the company’s manufacturing strength and its focus on building advanced electric vehicle technology in India. The company said the support reflects its efforts to scale up domestic production, increase localisation, and promote innovation across the electric mobility ecosystem. Ola Electric also reaffirmed its commitment to the government’s goal of making India a global hub for clean and advanced automotive manufacturing.
Manufacturing Focus
The PLI-Auto Scheme was launched to encourage domestic manufacturing in the automobile and auto components sector. Under the scheme, companies receive financial incentives based on incremental sales of advanced automotive technology products made in India. To qualify, manufacturers must meet strict criteria related to domestic value addition, investment levels, and sales performance.
The scheme aims to reduce India’s dependence on imports, attract new investments, and strengthen India’s position as a competitive global manufacturing destination.
Ola Electric Mobility Limited is known for its vertically integrated approach to electric vehicle manufacturing. The company produces EVs and key components, including battery cells, at its Futurefactory in Tamil Nadu. It is also supported by its Battery Innovation Centre in Bengaluru, which focuses on advancing battery and cell technology.
In addition, Ola Electric operates research and development centres in India, the UK, and the US. The company sells its vehicles through a direct-to-customer model, with thousands of physical stores across India and a strong online presence.
