EV stock engaged in manufacturing electric vehicles and certain core components for electric vehicles such as battery packs, motors, and vehicle frames jumped upto 5 percent in the day’s trade upon receiving the PLI incentive of upto 18 percent for its operations.
Price Action
With a market capitalization of Rs. 60,772 Crores, the shares of Ola Electric Mobility Limited were trading at Rs. 137.78 per equity share, up 0.04 percent from its previous day’s close price of Rs. 137.72. It has delivered a return of 51 percent in a month.
PLI Incentive
Ola Electric Mobility Limited has announced that its S1 X 3 kWh and S1 X 4 kWh have received Certification for Compliance with the eligibility assessment requirements as per the Production Linked Incentive (PLI) Scheme for the automobile and auto components.
Under the scheme, Ola Electric Mobility Limited is eligible for incentives for up to five consecutive financial years, commencing from Fiscal 2024 and the incentive would range between 13 percent and 18 percent of the determined sales value (DSV) of the products.
The certification has been granted by The Automotive Research Association of India (ARAI) after testing the product and checks on the localization of the components for Both the S1 X 3 kWh and S1 X 4 kWh scooters have also successfully met the stringent minimum localization criteria of 50 percent, as mandated by the Ministry of Heavy Industries.
With this, Ola Electric has become the only 2W and pure-play EV manufacturer to receive the certification for compliance with the eligibility assessment requirements (PLI certificate) for four products – S1 Air, S1 Pro, S1 X (3 kWh, and 4 kWh),
In addition, Ola Electric has also been awarded 20GWh capacity by the government under its PLI scheme for Advanced Chemistry Cell (ACC) Battery storage in March 2022. It is eligible to receive incentives under the Cell PLI scheme over a five-year period from the date of commissioning of the Ola Gigafactory in Krishnagiri, Tamil Nadu.
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About the Company
Ola Electric Mobility Limited is an electric vehicle company that primarily manufactures electric vehicles and certain core components for electric vehicles such as battery packs, motors, and vehicle frames.
The company’s market share in the E2W segment was 34.80 percent in FY24, which is a significant increase from 21 percent in FY23 and 5.70 percent in FY22. In D2C distribution, they have 870 experience centers and 431 service centers as of 31st March 2024.
Its Revenue from operations grew by 32 percent from Rs. 1,243 Crores in Q1FY24 to Rs. 1,644 Crores in Q1FY25, accompanied by widening losses of Rs. 267 Crores to Rs. 347 Crores.
Written by: Bharath K.S
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