Ola Electric’s Roadster X+ Gets PLI Certification
Ola Electric, a Bengaluru-based electric two-wheeler manufacturer, has received the Production Linked Incentive (PLI) certification for its electric bike, Roadster X+ 4.5 kWh. The certification, issued by the global automotive research centre (GARC), confirms that the Roadster X+ 4.5 kWh meets the minimum domestic value addition (DVA) requirements, making all units eligible for incentives under the PLI-Auto scheme.
Details
The certification comes after Ola Electric cut the price of its flagship Roadster X+ 9.1 kWh model by over 31%, from ₹1.9 Lakh to ₹1.3 Lakh. The company cited increased cell production at its Gigafactory and cost efficiencies from vertical integration as key reasons behind the price reduction. The Roadster X+ 9.1 kWh will now be sold through limited purchase windows rather than open sales, as demand continues to outstrip supply.
Company Background
Ola Electric, founded in 2017, is a clean tech company based out of Bengaluru. The company specializes in manufacturing electric two-wheelers, including e-scooters and e-bikes. Ola Electric’s Gen 3 range of e-scooters, including the S1 Pro+ and Gen 3 S1 X+, are powered by the 4680 Bharat Cell, which is manufactured at its Gigafactory.
Market Context
This certification is a significant milestone for Ola Electric, as it positions the company to receive incentives under the PLI-Auto scheme. The move comes amid a series of strategic moves by Ola Electric to boost sales and increase production capacity. The company’s recent price cuts and production scaling have sparked investor optimism, with Ola Electric shares jumping over 9.33% in intraday trading yesterday, closing at ₹28.35 on BSE.
The decision to cut prices and scale production reflects a thoughtful approach to market dynamics. It demonstrates the company’s ability to adapt to changing conditions, making strategic decisions that balance supply and demand while maintaining quality and performance standards. This is a testament to the importance of agility and responsiveness in product design and manufacturing.
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Source: Inc42