Ola's Gen 3 e-scooters receive PLI certification: Why it matters
What's the story
Ola Electric has announced that its entire Gen 3 scooter portfolio has received Compliance Certification under the Production Linked Incentive (PLI) scheme. The Automotive Research Association of India (ARAI), an autonomous body under the Ministry of Heavy Industries, Government of India, awarded this certification to all seven models in the Ola S1 Gen 3 range.
Market impact
Certification to improve profitability for Ola Electric
The PLI certification is expected to significantly improve Ola Electric's profitability from the second quarter of FY26. The company's spokesperson said that securing this certification for their Gen 3 scooters, which account for a major portion of their sales, is a key step toward profitability. "This will directly strengthen our cost structure and margins, enabling us to deliver sustainable growth," they added.
Incentive eligibility
Incentives under the PLI scheme
The PLI certification makes Ola Electric eligible for incentives between 13% and 18% of the determined sales value (DSV) until 2028. This move is likely to further bolster the company's cost structure and margins, paving the way for sustainable growth in the long run.
Portfolio details
Gen 3 portfolio and stock performance
Ola Electric's Gen 3 portfolio includes the S1 Pro (3 kWh and 4 kWh), S1 Pro+ (4 kWh), S1 X (2 kWh, 3 kWh, and 4 kWh), and S1 X+ (4 kWh). Following the announcement of the certification, shares of Ola Electric Mobility rose by as much as 1.8% to ₹50.38 on BSE today.