 "Ola Electric's S1 X model gets PLI certification, joining S1 Air, Pro")
Bengaluru-based Ola Electric announced on Tuesday that it has received certification for compliance with the eligibility assessment requirements under the Production Linked Incentive (PLI) Scheme for automobiles and auto components (PLI-Auto). The certification applies to its S1 X 3 kWh and S1 X 4 kWh scooters, which meet the minimum localisation criteria of 50 per cent. With this certification, these models join Ola’s S1 Air and S1 Pro scooters, which received DVA certification earlier this year.
The DVA certification is a prerequisite for eligibility for various government subsidies over the next five years.
“S1 X 3 kWh and S1 X 4 kWh together contribute to almost half of our revenues, and with the PLI now in place, we will be able to further improve our bottom line,” an Ola Electric spokesperson said.
The spokesperson added that receiving PLI certification for both premium and mass-market products underscores the company’s vertically integrated manufacturing capabilities, marking a significant milestone in advancing India's EV vision.
“The government’s ambitious Auto PLI Scheme is poised to enhance local supply chains, foster domestic manufacturing, and assist companies in achieving economies of scale,” the spokesperson said.
The Automotive Research Association of India (ARAI) granted the certification after testing the products and verifying the localisation of components. Under the scheme, Ola Electric is eligible for incentives over five consecutive financial years, starting from Fiscal 2024, with the incentives ranging between 13 per cent and 18 per cent of the “determined sales value” (DSV) of the products.
The Ministry of Heavy Industries is the nodal ministry for the ₹25,938 crore Production Linked Incentive (PLI) scheme for Automobile and Auto Components (PLI-Auto). The ministry has enforced strict domestic value addition norms to support the Make in India initiative.
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Apart from Ola, applicants including Mahindra & Mahindra (M&M), Tata Motors, Ashok Leyland, and Toyota Kirloskar, among others, have received PLI certificates.
Additionally, Ola Electric was awarded 20 GWh capacity under the government's PLI scheme for Advanced Chemistry Cell (ACC) battery storage in March 2022. The company is set to receive incentives under the Cell PLI scheme over a five-year period, starting from the commissioning of the Ola Gigafactory in Krishnagiri, Tamil Nadu.