In a significant boost to India’s electric vehicle (EV) manufacturing ecosystem, Ola Electric has secured a sanction order from the Ministry of Heavy Industries, Government of India, for the release of ₹366.78 crore under the Production Linked Incentive Scheme for Automobile and Auto Components (PLI-Auto Scheme). The order, dated December 24, 2025, and announced on December 25, 2025, pertains to claims for the financial year 2024-25 (FY 2024-25).The incentive is specifically linked to the Demand Incentive based on the company’s Determined Sales Value during FY 2024-25. The sanctioned amount will be disbursed through IFCI Limited, the designated financial institution responsible for payments under the scheme. This approval aligns fully with the applicable terms and conditions of the PLI-Auto Scheme, including any amendments introduced over time.
The development comes at a pivotal moment for Ola Electric, India’s leading electric two-wheeler manufacturer. The company reported deliveries of approximately 3,59,221 electric two-wheelers in FY 2024-25, reflecting a modest increase from 3,29,549 units in the previous fiscal year. This performance underscores Ola Electric’s scale in domestic production, even amid a challenging market environment in calendar year 2025, where overall EV registrations for the company saw a decline compared to the prior year.
An Ola Electric spokesperson welcomed the sanction, stating:
“The sanction of ₹366.78 crore under the PLI-Auto Scheme is a strong endorsement of Ola Electric’s manufacturing capabilities and our commitment to building world-class EV technology in India. This incentive recognises our sustained efforts in scaling domestic production, deepening localisation, and driving innovation across the electric mobility value chain. We remain committed to supporting the Government of India’s vision of making India a global hub for advanced automotive manufacturing and clean mobility.”
The PLI-Auto Scheme, a flagship initiative of the Government of India with an approved outlay of ₹25,938 crore over five years (FY 2022-23 to FY 2026-27), aims to strengthen domestic manufacturing in the automobile and auto components sector. It provides financial incentives based on incremental sales of advanced automotive technology products — including electric vehicles and related components — manufactured in India.
Eligibility under the scheme requires companies to meet stringent criteria, such as minimum global group revenue thresholds (₹10,000 crore), domestic value addition benchmarks, and investments in advanced technologies. Ola Electric’s qualification highlights its vertically integrated approach, from in-house battery cell development to full-scale production at its Futurefactory in Tamil Nadu.
This latest incentive follows Ola Electric’s earlier achievements under related PLI programs, including its selection for the Advanced Chemistry Cell (ACC) PLI scheme for local battery manufacturing. The funds are expected to enhance liquidity, support ongoing innovation, and reinforce the company’s role in reducing import dependency while promoting clean mobility.
As India accelerates its transition to electric mobility, such government-backed incentives play a crucial role in empowering domestic players like Ola Electric to compete globally, create jobs, and build a self-reliant EV ecosystem. This sanction not only validates Ola Electric’s operational execution but also signals continued government support for the sector’s growth in the coming years.
