New Delhi

Ola Electric has achieved a significant milestone. The company announced today that its most budget-friendly scooter model, the S1 X 2kWh, has successfully obtained Certification for Compliance with the eligibility assessment requirements as outlined in the Production Linked Incentive (PLI) Scheme for automobiles and auto components.

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Expanding PLI-certified portfolio

This recent certification brings Ola Electric's PLI-certified product count to five, encompassing both premium and mass-market two-wheeler segments. The achievement underscores the company's commitment to meeting stringent quality and localization standards set by the Indian government.

Meeting localisation criteria

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With the S1 X 2kWh joining the ranks of PLI-certified products, Ola Electric has demonstrated that its entire range of mass-market scooters now complies with the Ministry of Heavy Industries' mandate of a minimum 50 per cent localisation. This accomplishment highlights the company's dedication to fostering domestic manufacturing and reducing dependence on imported components.

A spokesperson for Ola Electric Mobility Limited commented on this achievement, stating, "The S1 X 2 kWh becoming our fifth product to receive PLI Certification is a testament to our progress. This certification for our third mass-market product not only validates our vertically integrated manufacturing capabilities but also marks a crucial step in advancing India's electric vehicle vision. The government's ambitious Auto PLI Scheme has been transformative, encouraging manufacturers to enhance local supply chains, promote domestic manufacturing, and achieve economies of scale."

Certification process and benefits

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The Automotive Research Association of India (ARAI) granted the certification after conducting rigorous product testing and verifying the localisation levels of components. Under the PLI scheme, Ola Electric stands to benefit from incentives for up to five consecutive financial years, beginning from Fiscal 2024. These incentives are projected to range between 13 per cent and 18 per cent of the "determined sales value" (DSV) of the certified products.

Ola Electric had previously secured PLI certificates for its other models, including the S1 Pro, S1 Air, S1 X 3kWh, and S1 X 4kWh.

Additional government support

In addition to the Auto PLI scheme, Ola Electric has been allocated a 20GWh capacity under the government's PLI scheme for Advanced Chemistry Cell (ACC) Battery storage, announced in March 2022. This allocation makes the company eligible for incentives under the Cell PLI scheme, which will be applicable for a five-year period starting from the commissioning date of the Ola Gigafactory in Krishnagiri, Tamil Nadu.