Ola Electric Backets First Electric Two-WHEELER MAKER to get subsidy in pli scheme of government, will receive Rs 74 Crore, Bajaj Auto

Ola Electric has become the first electric two-wheeler maker to get subsidy under the Central Government’s production-linked incentive (PLI) scheme, one of the large electric two-wheeler companies. This scheme was launched to promote the localization of automotive technology in the country.

Ola Electric has told the stock exchange in a filing that its subsidiary Ola Electric Technologies have received subsidy of Rs 73.74 crore under the PLI scheme of automobile and auto components from the Ministry of Heavy Industries. The duration of this scheme is five years old and a budgetary allocation of Rs 25,938 crore was made for it. Earlier in this scheme, big automobile companies had subsidized Tata Motors and Mahindra & Mahindra. However, Ola Electric is the first two-wheeler maker to get subsidy under the PLI scheme.

Ola Electric, the highest stake in the market of electric two-wheelers, has taken measures to reduce the cost. These include trimming hundreds of workers. The company plans to take a new measure to cut costs. It has prepared to process the vehicles themselves. Earlier, Ola Electric had outsourced the process of registration of vehicles. In this regard, the NDTV Profit report quoted sources as saying that the company has formed a team to process the registration of vehicles. Ola Electric estimates that this cost will reduce to about 20 percent.

For registration of an electric vehicle of the company, Vendor Rosmerta is paid Rs 1,500-1,800. Ola Electric estimates that this expenditure may be reduced to about 300 rupees. Recently, the company had said that there may be a decrease in the registrations of its vehicles on the Vahan portal in February. She is again talking to vehicle registration agencies about her contract. Its purpose is to make the process of registration easier and reduce the cost. However, this will not affect the company’s sales. Ola Electric has to pay the arrears of about Rs 18 crore from Rosmerta. In February, only one-third of the sale of the company’s electric scooters was registered.