Ola Electric Mobility shares declined 1.52% to ₹35.64 in morning trade on Monday, despite securing substantial government support and expanding its indigenous battery technology rollout. The electric vehicle manufacturer's stock faced selling pressure even after receiving ₹366.78 crore under the Production Linked Incentive scheme and scaling up deliveries across multiple states.

Stock Performance and Trading Activity

The counter opened at ₹36.37 and touched a high of ₹36.43 before declining to an intraday low of ₹35.62. Trading activity showed heavy selling pressure with concerning metrics:

PLI Scheme Recognition

Ola Electric secured substantial government support through the Production Linked Incentive Scheme, announced on December 25:

SBI Securities noted the PLI approval as positive for the medium term, recognizing it as validation of Ola Electric's manufacturing capabilities and scale. The incentive supports the government's vision of establishing India as a global hub for automotive manufacturing.

Bharat Cell Technology Expansion

On December 28, the company announced scaling up deliveries of its indigenously manufactured 4680 Bharat Cell-powered S1 Pro+ electric scooters:

The company claims to be India's first to fully own the cell and battery pack manufacturing process in-house, representing a significant milestone in vertical integration strategy.

Market Performance Concerns

Despite positive operational developments, investor sentiment remained subdued. The stock performance reflects broader market concerns:

The significant decline reflects ongoing concerns about the company's operational performance despite technological advancements and government support. The company continues expanding its portfolio including S1 scooters and Roadster X motorcycles in India's growing electric vehicle market.

Ola Electric Mobility shares surged 4.11% to ₹36.75 following the company's receipt of ₹366.78 crore in incentives under the Production Linked Incentive Scheme for Automobile and Auto Components for FY25. The stock opened higher at ₹36.85 compared to Thursday's closing price of ₹35.30, demonstrating strong investor response to the government sanction.

PLI-Auto Scheme Sanction Details

The Ministry of Heavy Industries sanction order represents a significant milestone for the electric vehicle manufacturer's operations and financial position:

According to the regulatory filing, Ola Electric Technologies, a wholly owned subsidiary of Ola Electric Mobility, received the sanction order. IFCI Limited has been designated as the disbursing financial institution for this flagship government initiative aimed at strengthening domestic manufacturing and encouraging advanced automotive technologies.

Market Performance and Analyst Outlook

The stock's performance reflects mixed investor sentiment amid the company's operational challenges:

Analysts note that while the PLI disbursement provides much-needed liquidity, the company continues to navigate a troublesome phase regarding profitability, having reported losses for several consecutive quarters. However, the infusion of government funds is viewed as a strong endorsement of Ola's manufacturing scale and capabilities.

Analyst Recommendations

Market sentiment remains divided on the stock's prospects:

The average 12-month consensus price target of ₹45.88 implies significant upside potential of 24.40% from current levels, suggesting analysts see value despite near-term profitability concerns.

Strategic Significance

The PLI-Auto Scheme represents a flagship initiative by the Government of India designed to boost local production and encourage large-scale investments through performance-linked fiscal incentives. The sanction serves as recognition of Ola Electric's manufacturing capabilities and commitment to building world-class EV technology in India, supporting the government's vision of making India a global hub for advanced automotive manufacturing and clean mobility.