Ola Electric Gains Strategic Edge with PLI Certification for Gen-3 Scooters

Ola Electric, India’s leading electric two-wheeler manufacturer, has received certification for its Gen 3 electric scooters under the Indian government’s Production Linked Incentive (PLI) scheme for the automobile and auto component sector. This certification, granted by the Ministry of Heavy Industries, makes Ola Electric eligible for financial incentives aimed at accelerating domestic electric vehicle (EV) manufacturing and adoption.

The PLI scheme, announced in 2021 with a total outlay of ₹25,938 crore, is designed to encourage advanced automotive technology manufacturing in India, particularly in the EV space. By securing this certification, Ola Electric joins a select group of Indian manufacturers that meet the scheme’s stringent eligibility criteria, including significant domestic value addition, localization of key components, and adherence to advanced automotive technology standards.

Ola Electric’s Gen 3 scooters, including popular models like the S1 Pro, S1 Air, and S1 X, are among the highest-selling EV two-wheelers in India, contributing to the company’s dominant market share of over 40 percent. The certification is expected to strengthen the company’s growth trajectory by making its products more cost-competitive and allowing it to pass on benefits to customers through pricing adjustments or added features.

Bhavish Aggarwal, founder and CEO of Ola Electric, hailed the certification as a significant milestone in the company’s mission to accelerate India’s transition to sustainable mobility. “The PLI certification not only validates our manufacturing capabilities and localization efforts but also reinforces our vision to make India a global hub for EV innovation. This will enable us to further scale production and deliver cutting-edge technology at accessible price points,” Aggarwal said in a statement.

Ola Electric has invested heavily in its Futurefactory in Krishnagiri, Tamil Nadu, which is one of the world’s largest two-wheeler manufacturing facilities. The company has been focusing on vertically integrating key components such as motors, battery packs, and electronics to enhance quality control and reduce costs.

Industry experts believe this recognition under the PLI scheme will further solidify Ola Electric’s leadership position and encourage other players to accelerate localization efforts. The certification also aligns with India’s broader goal of electrifying 30 percent of all vehicles sold by 2030.

With this approval, Ola Electric is expected to ramp up production, expand its portfolio with new models, and strengthen its battery manufacturing plans. The company is also preparing for an initial public offering (IPO), which is expected to raise significant capital for future growth.