Ola Electric shares jump 4% as mass market scooters get PLI certification

Shares of Ola Electric rose 4% in intraday trade on Wednesday after the newly listed electric two-wheeler maker said its mass market scooters S1 X 3 kWh and S1 X 4 kWh have received certification for compliance as per the Production Linked Incentive (PLI) Scheme for automobile and auto components.

Both S1 X 3 kWh and S1 X 4 kWh scooters have met the stringent minimum localisation criteria of 50%, as mandated by the Ministry of Heavy Industries, the Bhavish Aggarwal-led company says.

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

“With this, Ola Electric has become the only two-wheeler and pure-play EV manufacturer to receive the certification for compliance with the eligibility assessment requirements (PLI certificate) for four products -  S1 Air, S1 Pro, S1 X (3 kWh, and 4 kWh). The company had earlier received the certificate for S1 Air at the Auto PLI Conclave organised in January 2024,” the statement says.

Reacting to the development, shares of Ola Electric rose 4.1% to hit a high of ₹143.50 on the National Stock Exchange (NSE), taking the company’s market cap to over ₹61,000 crore.

“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. Receiving the PLI certification for the premium and mass-market products affirms our vertically integrated manufacturing strength marking a significant achievement 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,” says a spokesperson of Ola Electric Mobility.

Ola Electric has also been awarded 20 GWh (gigawatt hour) capacity by the government under its PLI scheme for Advanced Chemistry Cell (ACC) Battery storage in March 2022. The company says it is eligible to receive incentives under the cell PLI scheme over a five-year period from the date of commissioning of the Ola Gigafactory in Krishnagiri, Tamil Nadu.

On August 15, Ola Electric showcased a new range of electric motorcycles with prices starting from ₹74,999 and going up to ₹2,49,999 as the EV maker looks to grab a bigger pie of the two-wheeler segment.

Bookings for its all-new Roadster series of motorcycles - Roadster, Roadster X, and Roadster Pro began on August 15. Roadster and Roadster X deliveries will commence from the fourth quarter of the ongoing fiscal and the Roadster Pro will be shipped in 2026.

The company also showcased the indigenously developed Bharat 4680 cell and battery pack, new Gen-3 platform and MoveOS 5 at its Futurefactory in Krishnagiri, Tamil Nadu.