Ola Electric Receives Rs 366.78 Crore PLI Boost Amid Sales and Market Share Challenges

Ola Electric has received a major financial boost from the central government at a time when the company is navigating several business challenges. On Thursday, the electric vehicle maker confirmed that it has received a sanction order for incentives worth Rs 366.78 crore under the Production Linked Incentive (PLI) scheme for automobiles and auto components.

Government Clears Incentive Under PLI-Auto Scheme

The approval has been granted by the Ministry of Heavy Industries for claims related to the financial year 2024–25. According to the company, the sanction is linked to demand incentives based on Ola Electric’s determined sales value for the year. The approved amount will be released through IFCI Limited, which is the designated agency responsible for disbursing funds under the PLI-Auto scheme.

In addition, Ola Electric stated that the incentive has been cleared as per the scheme’s applicable terms and conditions. The PLI-Auto initiative aims to strengthen India’s domestic auto manufacturing, support advanced technologies, and improve the country’s global standing in the automotive sector. Ola Electric has been one of the beneficiaries as the government continues to push for localisation and scale in electric mobility.

An Ola Electric spokesperson said the sanction reflects the company's progress in scaling domestic production and expanding localisation across its vertically integrated EV manufacturing operations. The company has also been increasing investments in EV manufacturing as part of India’s broader clean mobility goals.

Founder Sells Shares to Clear Promoter-Level Debt

However, this positive development comes during a difficult phase for Ola Electric. The company has seen a steady drop in sales and a sharp fall in market share over the past year. During this period, Co-founder and CEO Bhavish Aggarwal sold shares worth Rs 91.89 crore, reducing his stake by about 0.6%. As per NSE bulk deal data, he sold 2.63 crore shares at Rs 34.99 each.

Ola Electric clarified that Aggarwal sold the shares to repay a promoter-level loan of Rs 260 crore. “With this, all of the previously pledged 3.93% shares will be released, removing a critical overhang,” the company said. It further added, “This action is taken to eliminate all promoter pledges, which can introduce avoidable risk and volatility. It is part of the founder's conviction that Ola Electric should operate with zero pledge overhang, and he should fully unwind the leverage.”