Ola Electric secures Rs 366.78 Cr under govt PLI scheme for FY25

Electric two-wheeler maker Ola Electric Mobility Limited has received a sanction order from the Ministry of Heavy Industries for incentives worth Rs 366.78 crore under the government’s Production Linked Incentive (PLI) Scheme for Automobile and Auto Components for the financial year ended March 2025.

In a regulatory filing dated December 25, the company said the sanction order was issued in favour of its wholly owned subsidiary, Ola Electric Technologies Private Limited. The approval relates to the release of demand incentives linked to the determined sales value recorded during FY25.

As per the filing, the sanctioned amount will be disbursed through IFCI Limited, the designated financial institution under the PLI-Auto scheme, and will be released in line with the applicable terms and conditions of the scheme. The incentive is tied to Ola Electric’s eligible sales during the year.

Operationally, Ola Electric reported deliveries of 3,59,221 electric two-wheelers in FY25, compared with 3,29,549 units in the previous fiscal. However, despite the rise in annual deliveries, the company has been steadily losing market share in recent months. According to Vahan data, TVS Motor Company reclaimed the top spot in electric two-wheeler sales in November, while Ola Electric slipped to fifth position.

The pressure is also visible on the financial front. Ola Electric’s revenue declined 46% year-on-year in Q2 FY26, although the company managed to narrow its losses through tighter cost controls. Separately, the company’s stock touched fresh lows on the bourses amid weak operating performance and investor concerns following promoter Bhavish Aggarwal’s third consecutive stake sale. The company clarified that the transaction was undertaken at the promoter’s personal level to repay a loan secured against his shares.