Ola Electric Bags INR 367 Cr PLI Incentive On FY25 Sales

Electric vehicle (EV) maker Ola Electric today said that it has received a sanction order from the heavy industries ministry (MHI) for the release of incentives totalling INR 366.78 Cr under a production-linked-incentive (PLI) scheme. 

In a filing with the exchanges, the company said that the incentives under the PLI scheme for automobiles and auto components pertained to the fiscal year 2024-25 (FY25). The EV maker added that the sops will be disbursed via Industrial Finance Corporation of India (IFCI) Ltd., the nodal body for releasing the incentives under the scheme. 

IFCI Ltd. is a state-backed development finance institution that provides medium and long-term credit to the industrial sector.

“… 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,” said an Ola Electric spokesperson.

This comes three months after the company filed a claim of around INR 400 Cr under the PLI scheme for FY25, citing eligible sales of about INR 3,000 Cr during the fiscal. The company had calculated the incentive at the rate of 13–14%. The Centre has more or less stuck to the same number.

It is pertinent to note that Ola Electric registered 3.6 Lakh EVs in FY25, up 9% from 3.3 Lakh units in the previous fiscal. The incentives are expected to strengthen Ola’s liquidity position and support its financial performance in the coming quarters. 

Launched in 2021, with an outlay of INR 26,000 Cr over a span of five years, the PLI scheme for the automobile and auto components aims to boost manufacturing of advanced automotive technology (AAT) products, drive deeper localisation, and build a robust supply chain.

Ola Electric’s Many Fires

The positive news comes as the EV juggernaut tried to douse fires on multiple fronts throughout 2025. The company continued to bleed market share as sales plummeted, undertook massive layoffs and faced allegations of toxic workplace practices. 

On top of this, consumer complaints piled up and the Central Consumer Protection Authority (CCPA) intensified its probe into the company. These complaints ranged from consumer rights violations and misleading ads to refund disputes and persistent service failures. 

Delivery delays further eroded customer trust, while its service network expanded more slowly than vehicle volumes. What did not help was slowing revenues and hefty losses. 

In Q2 FY26, the EV maker managed to trim its consolidated net loss by over 15% to INR 418 Cr compared to INR 495 Cr in the same quarter last fiscal. However, revenue from operations declined 43% to INR 690 Cr during the quarter under review from INR 1,214 Cr in Q2 FY25. 

As a result, the company’s proposed qualified institutional placement (QIP) failed to materialise while its stock tanked to record lows. 

Amid the melee, founder and chairman Bhavish Aggarwal sold shares worth INR 325 Cr in a three-day long selling spree earlier this month. The company, however, claims that the proceeds will be utilised to fully repay promoter-level debt. 

Shares of the company closed Wednesday’s (December 24) trading session 1.75% higher at INR 35.37 on the BSE.