Ola Electric vrooms

Shares of Ola Electric Mobility moved higher today after the company received approval for incentive disbursement under the government’s Production Linked Incentive (PLI) scheme for the automobile sector. The stock gained over 5% intraday to touch a high of Rs 37.28, before easing slightly to trade around Rs 36.40. The broader market remained subdued, with the benchmark index trading marginally lower.

The rally followed confirmation that the Ministry of Heavy Industries has sanctioned incentives worth Rs 366.78 crore to Ola Electric under the PLI-Auto scheme for FY25. The amount will be disbursed through IFCI, the designated implementing agency, and is linked to the company’s eligible sales and investments made under the scheme. The approval strengthens visibility on cash flows and reinforces policy support for domestic EV manufacturing.

The incentive is seen as a validation of Ola Electric’s execution capabilities and its progress in building a vertically integrated EV ecosystem. The company has been investing heavily in localisation, battery manufacturing and capacity expansion at its Futurefactory in Tamil Nadu, aligning with the government’s objective of building a globally competitive electric mobility ecosystem.

Market participants view the development as a positive trigger for the stock, with the incentive improving earnings visibility and reinforcing confidence in the company’s long-term growth strategy. The move also underscores the broader policy push to accelerate EV adoption and strengthen India’s position in advanced automotive manufacturing.