Ola S1 To Be More Affordable? Gen 3 Electric Scooters Now PLI Certified

Ola Electric Gen 3 Scooters: Ola Electric, one of India's leading EV makers, has received the Production-Linked Incentive (PLI) certification for its entire Gen 3 scooter line-up from the Automotive Research Association of India (ARAI), the agency under the aegis of the Ministry of Heavy Industries, Government of India. 

This PLI certification applies to all scooters in Ola's Gen 3 range: S1 Pro 3kWh, S1 Pro 4kWh, S1 Pro+ 4kWh, S1 X 2kWh, S1 X 3kWh, S1 X 4kWh, and S1 X+ 4kWh, representing the majority of the brand's current sales. With this, both the Gen 2 and Gen 3 scooter portfolios now stand PLI-certified.

Ola S1 PLI Certification: What Does It Mean?

The PLI certification means that Ola's S1 Gen3 scooters meet the eligibility requirements for the Union Government's PLI scheme for the automobile and auto components sector. With this achievement, Ola has now become eligible for incentives ranging from 13 to 18 per cent of the determined sales value (DSV) until 2028, a 'critical step' in significantly enhancing Ola Electric's profitability from Q2 FY26, according to the EV maker.

'Securing PLI certification for our Gen 3 scooters, which form the bulk of our sales, is a critical step towards profitability. This will directly strengthen our cost structure and margins, enabling us to deliver sustainable growth,' said an Ola Electric spokesperson.

Also Read: Euler Neo HiRange Electric 3-Wheeler Launched At Rs 3.10 Lakh, Claims 261 KM Range

Ola S1 PLI Certification: A Big Relief for Ola and Consumers?

This certification comes at a crucial time when Ola has been facing several challenges, including a persistent decline in sales. For context, Ola's net loss stood at Rs 428 crore during the first quarter compared to a loss of Rs 347 crore in the same period a year ago. Now, with the PLI scheme for the S1 Gen3 scooters, it is speculated that both Ola and consumers are expected to benefit. Ola, because the move is likely to improve its profitability, and consumers, because Ola might pass on these incentives in the form of discounts/offers to the end users, thereby making the scooters more affordable. 

Also Read: New TVS Electric Scooter To Launch On August 28; Here's What You Need To Know

Ola S1 PLI Certification: Eligibility Criterion

The PLI scheme for the automobile and auto components sector is a government initiative aimed at incentivising domestic manufacturing of advanced automotive technology (AAT) products, including electric motors and battery packs. The government offers financial benefits to companies that achieve a minimum 50 per cent Domestic Value Addition (DVA) in their products.