Ola Electric S1 X scooters receive PLI certification, boosting affordability and driving demand in India’s expanding electric vehicle market.
Ola Electric mass-market S1 X scooters with 3 kWh and 4 kWh batteries have received the coveted Production Linked Incentive (PLI) from the Ministry of Heavy Industries. This certificate is significant for the company as it underscores its commitment to local production and entrenching the company’s operations in India which is poised for expansion in the production of electric vehicles.
Prerequisites For The PLI Scheme
In a bid to meet the conditions of the recently launched PLI scheme, Ola Electric S1 X variants had to include at least a 50% domestic value addition. This condition has allowed Ola Electric to qualify for massive incentives from the government over the calendar year of five. These incentives are expected to enable the company to lower manufacturing costs and expand its market share of electric scooters in India by offering its products at lower prices.
Founder’s Statement on Certification
On X (formerly Twitter), Ola Electric’s founder, Bhavish Aggarwal said, “Delighted to announce that S1X 3, and 4 kWh scooters have got the domestic value addition (DVA) under the Production Linked Incentive (PLI) Scheme These two products account for 50% of our orders. Further bolstered to build India’s EV future!”
Implications to Pricing and Market Demand
Out of all these scooters, the Ola Electric S1 X scooter is even more identified by price sensitivity since it is an entry-level scooter. The advantage of the PLI scheme is expected to make them favourable for potential buyers and is expected to drive demand for Ola Electric’s products and greatly enhance the expansion of the Indian electric vehicle market.
Positive Market Response
PLI certification has also provided a positive effect towards the stock of Ola Electric. The company’s share price gained 87 percent on Tuesday and closed at Rs 142.16 on the Bombay Stock Exchange. This enormous raise indicates investors’ belief in Ola Electric’s ability to capitalize on the increasing market of EVs and the benefits of government support.
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