Ola S1 Pro Gen 2 Now Becomes PLI Certified | Here’s Why It Matters

Bengaluru-based Ola Electric has secured its second PLI-Auto certificate under the government's production-linked incentive (PLI) scheme. This certification, awarded by the International Centre for Automotive Technology (ICAT) on Monday, recognises the Gen-2 Ola S1 Pro e-scooter for achieving the scheme's minimum domestic value addition (DVA) requirement of 50%.

What Do You Understand By PLI Scheme and its Significance:

The PLI plan was introduced in 2021 by the Ministry of Heavy Industries (MHI) with the objective of stimulating and expediting the expansion of the Indian automotive industry, namely in the manufacturing of Advanced Automotive Technology (AAT) products such as electric vehicles. The schemes want to encourage companies to make their products in India, using parts and processes from here, to make more things locally and rely less on imports.

This approach also attracts extra investment, which could lead to better technology and more jobs. It backs India's endeavours to strengthen its aerospace and military industry, which helps Indian companies globally.

Ola Electric's Gen-2 Ola S1 Pro Exceeds DVA Requirements:

Deployed in August 2023, the Gen-2 Ola S1 Pro has effectively exceeded the PLI program's minimum threshold, achieving a DVA of 51.84%. Ola Electric's commitment to the "Make in India" campaign is demonstrated by the fact that its e-scooters are built with locally produced parts.

Achieving this high DVA is mostly dependent on the company's one million-unit capacity manufacturing plant in Tamil Nadu. Important parts like electric motors and battery packs are produced locally. While certain parts like Battery Management Systems (BMS) and digital instrument clusters are outsourced to partners like Foxconn, Ola Electric's overall commitment to local production remains evident.

Benefits of PLI Certification for Ola Electric:

By receiving the PLI-Auto certificate, Ola Electric becomes eligible to avail benefits under the PLI scheme. The exact amount of incentive the company will receive depends on its sales volume. However, the scheme offers an upper limit of 25% of the total allocation (Rs 25,938 crore), providing Ola Electric with a significant financial boost to further its production and development endeavours.

Ola Electric's Achievements:

This PLI-Auto certification adds to Ola Electric's growing list of achievements. The company reached 253,000 retail units and over 31% of sales in 2023, making it the leading player in the Indian e-two-wheeler market. Being the first Indian OEM to sell over 250,000 electric two-wheelers in a single year also created history.

In the near future, Ola Electric is actively seeking an IPO and investigating the possibility of establishing a local battery cell manufacturing facility in Tamil Nadu. This demonstrates their dedication to further expansion and independence in the Indian EV market.

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