India’s largest electric vehicle (EV) manufacturer, Ola Electric Mobility, has achieved a major milestone with the certification of its Gen 3 scooter portfolio under the Government of India’s Production Linked Incentive (PLI) Scheme for the automobile and auto components sector. The certification, given by the Automotive Research Association of India (ARAI) under the Ministry of Heavy Industries, makes Ola Electric eligible for incentives ranging between 13% and 18% of determined sales value (DSV) until 2028.
Ola Electric Profitability Boost
As Ola Electric secures PLI certification for both Gen 2 and Gen 3 scooters, the company expects to see a significant improvement in cost structures and operating margins from Q2 FY26 onwards. The Gen 3 portfolio—which includes S1 Pro (3 kWh and 4 kWh), S1 Pro+ (4 kWh), S1 X (2 kWh, 3 kWh, 4 kWh) and S1 X+ (4 kWh)—accounts for most of the company’s current sales.
“This is a big step towards profitability,” said a company spokesperson. “It strengthens our cost base, helps us get to positive EBITDA in our auto business faster and ensures our customers get top-notch EVs at competitive prices.”
New Products
Ola Electric PLI Certification announcement coincides with the company’s annual ‘Sankalp’ event, where the company launched new models powered by its indigenous 4680 Bharat Cell technology. The lineup includes S1 Pro Sport (5.2 kWh and 4 kWh), S1 Pro+ (5.2 kWh) and Roadster X+ (9.1 kWh), priced starting at INR 1,49,999. S1 Pro+ 5.2 kWh and Roadster X+ 9.1 kWh will start delivering this Navratri, while S1 Pro Sport will roll out in January 2026.
Strategic Significance of PLI Certification
The PLI Scheme is designed to promote domestic manufacturing and reduce imports. For Ola Electric, this means a multi-year advantage as the company is already India’s largest EV manufacturer and the sector is getting more competitive. With incentives until 2028, the company will benefit not only from improved short-term profitability but also from the extra cash that can be re-invested in R&D, manufacturing scale-up and battery innovation.
Building India’s EV Ecosystem
Ola Electric is investing heavily to build an end-to-end EV ecosystem. Its Futurefactory in Tamil Nadu is emerging as India’s largest EV hub, producing both vehicles and critical components. The company’s Battery Innovation Centre (BIC) in Bengaluru is focused on advanced cell and battery technologies. With R&D teams in India, UK and US, Ola is betting on vertical integration to be competitive in the long term in the EV space.
Market Impact
For investors, this is a big milestone in Ola Electric’s journey to sustainable profitability. With rising EV adoption, government support and a strong product pipeline, Ola is positioning itself not only as a domestic leader but also as a global EV player.
Analysts expect that the PLI-linked incentives, coupled with higher-margin products, could accelerate the company’s trajectory to becoming EBITDA-positive sooner than previously anticipated.
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