Ola Electric’s S1 X 2kWh Scooter Bags PLI Certification

Days after Ola Electric’s S1 X scooter received its DVA certification for the Production Linked Incentive (PLI) scheme, its other model, the S1 X 2kWh, has now obtained the Certification for Compliance for the PLI Scheme of automobile and auto components. 

The startup said in a statement that it had met the stringent minimum localisation criteria of 50%, as mandated by the Ministry of Heavy Industries. 

The Automotive Research Association of India (ARAI) granted this certification after testing the product and ensuring the localisation of the components.

With this certification, S1 X 2 kWh has become its fifth portfolio product to receive the PLI Certification. It has earlier received the PLI certificates for S1 Pro, S1 Air, S1 X 3kWh, and S1 X 4kWh. 

Under the scheme, Ola Electric is eligible for incentives for up to five consecutive financial years, beginning in 2024. The incentive would range between 13% and 18% of the “determined sales value” (DSV) of the products. 

“Receiving the PLI certification for our third mass-market product affirms our vertically integrated manufacturing strength marking a significant achievement in advancing India’s EV vision. The government’s ambitious Auto PLI Scheme has been a game changer that has also pushed manufacturers to enhance local supply chains, foster domestic manufacturing, and assist companies in achieving economies of scale.” Ola Electric’s spokesperson said in a statement.

The PLI scheme, launched by the Indian government in 2021, aims to boost domestic manufacturing of advanced automotive technologies, including electric vehicles (EVs). 

This certification follows its August DAV certification for the S1 X scooter model in August. In the same month,  Ola Electric’s made its debut in the bourse earlier this month on August 9. 

The much-hyped IPO of Ola Electric received a rather muted response on the listing day and made a flat debut on the bourses. The stock debuted at INR 75.99 per share as against the issue price of INR 76.

While the stock’s prices surged to double its listing pieces, it seems to have lost momentum now. 

Earlier this month, Goldman Sachs initiated coverage on a listed mobility major with a “buy” rating on the robust growth outlook, saying that the startup is set to benefit from long-term structural trends in India’s electric two-wheeler market.

On the financial front, Ola Electric’s consolidated net loss widened 30% to INR 347 Cr in the June quarter of the financial year 2024-25 (Q1 FY25) from INR 267 Cr in the year-ago quarter. Operating revenue rose 32% to INR 1,644 Cr during the quarter under review from INR 1,243 Cr in Q1 FY24.