Ola Electric Technologies Pvt. Ltd. has been granted an incentive of ₹73.74 crore under the Production Linked Incentive (PLI) Scheme for the automobile and auto components sector in FY24. According to a regulatory filing by Ola Electric Mobility Ltd., this makes it the first two-wheeler manufacturer to receive benefits under the scheme.
“The sanctioned amount of ₹73,74,36,612 is based on the Determined Sales Value for FY 2023-24, as per the existing terms and conditions of the PLI-Auto Scheme,” the company stated.
Understanding the PLI Scheme
Launched in 2020, the Production Linked Incentive (PLI) scheme is a key government initiative aimed at strengthening India’s manufacturing sector. Initially introduced for electronics, the scheme has since expanded to 13 industries, including automobiles and auto components.
With a total budget of ₹1.97 lakh crore, the PLI scheme is designed to enhance India’s global competitiveness, attract investment, boost exports, generate employment, and reduce import dependence. It provides financial incentives to companies based on incremental domestic sales, typically ranging between 4% and 6% over five years.
PLI-Auto: Driving Growth in the Automotive Sector
The automotive-specific PLI scheme, known as PLI-Auto, was approved in September 2021 with an allocated budget of ₹25,938 crore. It focuses on two key categories:
- Champion OEMs – Manufacturers of advanced automotive technology vehicles, such as electric and hydrogen fuel cell vehicles.
- Component Champions – Companies producing high-tech automotive components, including new entrants from non-automotive sectors.
The scheme places special emphasis on electric and hydrogen-powered vehicles while encouraging deep localization of components. Eligibility is determined by factors such as investment levels, sales thresholds, and domestic value addition.
For electric vehicle manufacturers like Ola Electric, the incentives are tied to metrics such as battery capacity, vehicle range, and the percentage of localized components. The scheme follows a tiered structure, offering higher benefits to companies that commit to greater investment and domestic manufacturing.
Boosting India’s EV Ecosystem
PLI-Auto has already attracted major investments from traditional automakers and emerging EV players. Ola Electric’s ₹73.74 crore incentive for FY24 underscores how the scheme is accelerating India’s shift toward sustainable mobility while strengthening the local manufacturing ecosystem.
By prioritizing domestic production over imports, the government aims to position India as a global leader in automotive innovation, particularly in EV and hydrogen technologies. This not only supports industry growth but also contributes to reducing the trade deficit and creating job opportunities in the sector.
Read More:
