Certification qualifies the company for 13–18% incentives under the PLI scheme until 2028*
Shares of Ola Electric climbed more than 4% in trading on August 26 after the company announced it had received official certification under the Production Linked Incentive (PLI) scheme for its Gen 3 electric scooter portfolio. The stock was trading at ₹51.31 on the NSE, up 5.64% at 12:11 IST, reflecting strong investor confidence following the news.
The PLI certification was granted by the Automotive Research Association of India (ARAI) on behalf of the Ministry of Heavy Industries, Government of India, marking a key milestone in Ola Electric’s growth strategy. This certification not only validates the company’s compliance with the scheme’s eligibility norms but also makes Ola Electric eligible for substantial financial incentives ranging from 13% to 18% until FY2028.
According to the company’s stock exchange filing, seven models from the Gen 3 lineup—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—are now officially PLI-certified. These models form the core of Ola’s current sales and represent a major portion of its revenue stream.
This achievement follows an earlier certification for Ola’s Gen 2 scooters, meaning the company’s flagship lineup across both generations now fully qualifies under the PLI scheme. With increased eligibility for government-backed incentives, Ola Electric expects a notable boost in profitability starting from the second quarter of FY26.
The Production Linked Incentive scheme is a flagship initiative by the Indian government aimed at promoting domestic manufacturing and enhancing global competitiveness in key sectors, including electric mobility. By qualifying for the scheme, Ola Electric is positioned to reduce costs and improve margins while scaling up its production capabilities.
As India pushes towards a greener future with rapid EV adoption, Ola Electric continues to lead the charge as the largest pure-play electric vehicle manufacturer in the country. The PLI certification is expected to strengthen the company’s market position and support its long-term vision of accelerating India’s transition to sustainable mobility.
