Ola Electric said on Thursday that it has received a sanction order from the Ministry of Heavy Industries for the release of incentives amounting to Rs 366.78 crore under the Production Linked Incentive Scheme for Automobile and Auto Components (PLI-Auto Scheme) for claims pertaining to FY 2024-25.
According to Ola Electric, the sanction pertains to the Demand Incentive for the Determined Sales Value for FY 2024-25, and authorises a payment of Rs 366.78 crore to be released through IFCI Limited, the designated financial institution for disbursement under the scheme. The incentive has been sanctioned in accordance with the applicable terms and conditions of the PLI-Auto Scheme, as amended from time to time, it said.
This comes a week after founder Bhavish Aggarwal divested a 2.2% stake valued at more than Rs 324 crore in the company. The selling by the promoter drove the company’s share to an all-time low close of Rs 31.46 on December 18. Since then, Ola Electric shares have recovered 12-13% as the company clarified that the transaction was undertaken to repay a promoter-level loan of Rs 260 crore fully and to release all 3.93% shares previously pledged, thereby eliminating all promoter pledges.
An Ola Electric spokesperson said that the sanction of Rs 366.78 crore under the PLI-Auto Scheme is a strong endorsement of Ola Electric’s manufacturing capabilities and commitment to building world-class EV technology in India. "This incentive recognises our sustained efforts in scaling domestic production, deepening localisation, and driving innovation across the electric mobility value chain," added the spokesperson.
The PLI Auto Scheme proposes financial incentives to support domestic manufacturing of Advanced Automotive Technology (AAT) products and attract investments in the automotive manufacturing value chain.
Ola’s sales in the Indian e-2W market have taken a big hit in 2025. According to VAHAN data, the Bengaluru-based company sold 8,400 electric vehicles in November 2025, a massive decline of 71% year-on-year. This was also Ola’s lowest monthly sales in more than three years.
At its peak, Ola Electric dominated India’s e2W market with monthly sales peaking at 53,647 units in March 2024. However, growing competition from legacy players and issues regarding quality and services of its two-wheelers started reflecting on the company's sales.
The company's net loss in the second quarter of the financial year 2026 narrowed to Rs 418 crore from a loss of Rs 495 crore during the same quarter last year. However, revenue for the quarter declined by 43.2% to Rs 690 crore from Rs 1,214 crore last year.