Ola Electric: got PLI certification for Gen 3 scooter portfolio

Ola Electric: got PLI certification for Gen 3 scooter portfolio

Ola Electric Mobility, a leading player in India's electric vehicle (EV) market, has received the Production Linked Incentive (PLI) certification for its Gen 3 scooter portfolio. This certification, which was announced on July 2, 2025, underscores the company's commitment to vertical integration and cost leadership strategies.

The Gen 3 scooters, which account for 80% of Ola's total sales, have been recognized for their efficiency and cost-effectiveness. The certification aligns with Ola's broader strategy to reduce costs by 30% and boost gross margins to 35–40% by FY26 through in-house battery production and other vertical integration initiatives [1].

The PLI certification is a significant milestone for Ola Electric, as it positions the company to leverage government support for domestic battery manufacturing. The certification comes amidst a broader shift in India's EV landscape, where Ola is emerging as a pivotal player through its aggressive vertical integration strategy and product innovation roadmap [2].

Ola's Gen 3 scooters have already demonstrated their competitive edge in the market. By slashing warranty claims by 60% and delivering better margins, these scooters have outperformed competitors like TVS and Bajaj. The certification further underscores the company's ability to capitalize on cost leadership and localized software advancements, positioning it to outperform rivals [2].

The PLI certification is also a testament to Ola's strategic focus on two-wheelers, which account for over 80% of EV demand in India. The company's modular Gen 4 platform, which supports 2W, 3W, and 4W vehicles, offers a 76% increase in peak power and 25% weight reduction. This flexibility allows Ola to rapidly iterate on models without redesigning entire platforms, providing a competitive advantage in the fast-evolving market [2].

While the PLI certification is a significant win for Ola Electric, it also highlights the company's ongoing investment in its Gen 3 scooter portfolio and its commitment to scaling production. The company's financials have shown promise, with auto Ebitda turning positive in June 2025 and projections for free cash flow positivity by Q4 FY26. The certification further supports Ola's target of 325,000–375,000 vehicle deliveries in FY26 and revenue of ₹4,200–4,700 crore [2].

For investors, the PLI certification for Ola Electric's Gen 3 scooter portfolio represents a high-conviction opportunity in India's EV revolution. The company's vertical integration strategy and product roadmap ensure sustained demand in the two-wheeler segment, while the PLI certification provides a financial boost to support these initiatives [2].

In conclusion, Ola Electric's PLI certification for its Gen 3 scooter portfolio is a significant development that underscores the company's strategic focus on vertical integration and cost leadership. As the EV market in India continues to evolve, Ola's innovative approach and government support position it as a key player in shaping the future of mobility.

References:
[1] https://www.business-standard.com/markets/capital-market-news/ola-electric-corrects-on-profit-booking-125082100361_1.html
[2] https://www.ainvest.com/news/ola-electric-strategic-turnaround-vertical-integration-product-innovation-drive-sustainable-gains-2508/