Ola Electric Mobility Limited Secures Incentives for Electric Two-Wheelers

Ola Electric Mobility Limited has been granted a sanction order by the Ministry of Heavy Industries for incentives amounting to Rs 366.78 crore under the government’s Production Linked Incentive (PLI) Scheme for Automobile and Auto Components for the financial year ending March 2025. In a regulatory filing dated December 25, it was disclosed that the sanction order was directed towards its wholly owned subsidiary, Ola Electric Technologies Private Limited. This approval pertains to the release of demand incentives correlated to the sales figures recorded during FY25.

As detailed in the filing, the sanctioned funds will be distributed via IFCI Limited, the appointed financial institution under the PLI-Auto scheme, and will be released following the stipulated terms and conditions of the programme. The incentive is connected to Ola Electric’s qualifying sales for that year.

Operational Performance of Ola Electric

In terms of operational performance, Ola Electric reported the delivery of 3,59,221 electric two-wheelers in FY25, up from 3,29,549 units in the previous financial year. However, in spite of the increase in annual deliveries, the company has been consistently losing market share in recent months. Vahan data indicates that TVS Motor Company took back the lead in electric two-wheeler sales in November, while Ola Electric fell to the fifth position.

Financial Challenges Facing Ola Electric

Financially, Ola Electric has faced challenges as its revenue plummeted by 46% year-on-year in Q2 FY26, although the company managed to reduce its losses through tighter cost management. Additionally, the company’s stock has reached new lows in the market due to poor operating performance and investor concerns following promoter Bhavish Aggarwal’s third consecutive stake sale. The company has clarified that this transaction was carried out at the promoter’s personal level to address a loan secured against his shares.