Ola Electric Mobility’s share price surged over 18 per cent in three sessions to hit its 5-month high at Rs 57.50 apiece on the NSE. The rally came after the Electric Vehicle (EV)-maker secured Production-Linked Incentive (PLI) certification for its Gen 3 scooter portfolio.
“This certification was granted by the Automotive Research Association of India (ARAI) under the aegis of the Ministry of Heavy Industries, Government of India to all of the seven Ola S1 Gen 3 scooters,” said Ola Electric in its exchange filing dated August 26.
Ola Electric’s Gen 3 portfolio includes models like the S1 Pro 3 kWh, S1 Pro 4 kWh, S1 Pro+ 4 kWh, S1 X 2 kWh, S1 X 3 kWh, S1 X 4 kWh, and S1 X+ 4 kWh. These models account for the bulk of Ola’s current sales.
“As a result, this certification is set to significantly enhance Ola Electric’s profitability from Q2 FY26 onwards,” the EV-maker said.
The PLI certification makes Ola Electric eligible to receive incentives between 13 per cent and 18 per cent of its determined sales value (DSV) through 2028.
Expectations Of Lower GST Rate
Another reason behind the rally is the the buzz around government’s plan to lower GST rate for entry-level two-wheelers and cars, which currently fall under the highest tax slab 28 per cent. As per reports, the government is planning to lower the GST rates on such vehicles to 18 per cent.
This is expected to drive demand and boost margins of auto manufacturers, which have been reeling under stress due to weak demand from urban consumers, shortage of rare earth materials, and higher tariffs.
Below Par Penetration of Electric Motorcycles
According to VAHAN database, electric two-wheelers accounted for nearly 5.20 per cent of all two-wheelers sales in FY24. Of this, electric motorcycles accounted for less than 0.1 per cent of total two-wheeler sales in the same year.
As per the NITI Aayog’s estimates, electric scooters are projected to reach 80 per cent of total scooter sales by 2030. Electric motorcycles, however, are projected to make up just 10 per cent of their segment by the same year.
Currently, electric motorcycle manufacturing in India is limited to a few players, including Ola Electric, Revolt Motors, Oben Electric, Ultraviolette Automotive and Matter among others. Established manufacturers such as Hero MotoCorp, Honda Motorcycle and Scooter India, Bajaj Auto, and TVS Motor have not yet launched electric motorcycles.
