Ola Electric's S1X scooters get PLI eligibility certification

Ola Electric's mass-market scooters—S1 X 3 kWh and 4 kWh—have received the certification for compliance with the eligibility requirements of the Production Linked Incentive (PLI) Scheme.  

The models meet the minimum localisation criteria of 50%, as mandated by the Ministry of Heavy Industries, said the company. 

Under the PLI scheme, the company will be eligible for incentives for up to five consecutive financial years, beginning from FY2024. The incentive will range from 13% to 18% of the determined sales value of the products.  

“S1 X 3 kWh and S1 X 4 kWh together contribute to almost half of our revenue, and with the PLI now in place, we will be able to further improve our bottom line," a spokesperson for Ola Electric said. 

The Indian government introduced the PLI scheme in 2020 to boost domestic manufacturing of automotive technology and minimise India’s dependence on imports from countries such as China. 

Bhavish Aggarwal, Founder, Ola Electric, announced the certification of S1 X 3 kWh and S1 X 4 kWh on X, formerly Twitter. He also said the two products make up for about 50% of orders.

In its post-earnings investor call on August 14, the company said it saw heightened demand for its relatively low-priced Ola S1 X series, which was launched in Q3 of FY24. 

Ola Electric’s product certification comes days after its annual product launch event 'Sankalp' in Bengaluru, where Aggarwal launched the ‘Roadster’ series of motorcycles and teased two of its upcoming models, Sportster and Arrowhead.

At the event, Aggarwal also announced the rebranding of Ola Cabs as Ola Consumer and said Krutrim plans to launch India’s first AI chips by 2026. 

Ola Electric, which listed on Indian stock exchanges earlier this month, made a lacklustre debut, but its stock price has since soared. On Tuesday, the stock closed at Rs 142.16 apiece on the Bombay Stock Exchange, an 87% rise from its listing price of Rs 76.