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Ola Electric Gets ₹95.8 Cr Boost Under PLI Scheme
31 Aug
Summary
- Ola Electric received ₹95.8 crore incentive under the auto PLI scheme.
- This payment aids the company in improving its cash generation.
- The incentive supports Ola's efforts to scale domestic production.
Ola Electric Mobility received a ₹95.8 crore incentive from the government's Production Linked Incentive (PLI) scheme for automobiles and auto components. This payout, sanctioned for FY27, provides a much-needed cash-flow boost to the electric two-wheeler manufacturer, which has been prioritizing improved cash generation.
The company's recent financial statements indicate negative cash flow from operations, attributed to operating losses and increased material costs. The latest PLI incentive offers additional liquidity without requiring fresh equity or debt. Ola is also working to reduce its operating cost base to around ₹300 crore per quarter.
This sanction acknowledges Ola Electric's dedication to scaling domestic production, enhancing localization, and advancing electric vehicle technology within India. The company manufactures its vehicles and key components, including battery cells, at its Futurefactory in Tamil Nadu.
