Ola Electric Gets Rs 73.74 Cr Under PLI-Auto Scheme

Ola Electric Technologies Private Ltd has been approved for an incentive payment of ₹73.74 crore under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components for FY24, according to a filing by Ola Electric Mobility Limited. 

This likely makes it the first two-wheeler manufacturer to receive this.

The company confirmed it received the sanction order from the Ministry of Heavy Industries, which involves releasing the incentive claim to Ola Electric through IFCI Limited. 

Read also- Phot.AI Raises $2.7Mn Seed Funding Led By Info Edge Ventures

The PLI scheme aims to boost India’s manufacturing of advanced automotive products, reduce costs, and strengthen the supply chain. 

In January, the company also launched its Gen 3 electric scooter range, including models like S1X, S1X+S1 Pro, and S1 Pro+, powered by the latest MoveOS 5 system.

The scheme encourages production in India instead of imports, aiming to make India a global hub for automotive manufacturing, especially in emerging technologies like electric vehicles. It also seeks to reduce the trade deficit and create more jobs.

Ola Electric is cutting 1,000 jobs, including employees and contract workers, to reduce growing losses. The layoffs include staff in sales, service, and warehouse roles at its showrooms and service centers.
This is the company's second round of layoffs, following the dismissal of 500 employees in November last year. 

In February, the company closed regional warehouses across the country and announced it would use its network of 4,000 retail stores for vehicle inventory, spare parts, accessories, and last-mile deliveries.

Startup Funding News: Your Gateway to Every Funding Update.

Latest Startup News: Stay updated with the latest startup news and trends. Your go-to source for startup ecosystem updates.

Startup Stories: Discover inspiring tales of startups overcoming challenges and achieving success.