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.

Ola Electric Mobility has announced the launch of its innovative same-day service guarantee centers, marking a significant step forward in customer service excellence for the electric vehicle sector. The company has opened its first such facility in Bengaluru, with plans for nationwide expansion.

Service Innovation Initiative

The new service centers are designed to provide same-day service guarantees to customers, addressing one of the key concerns in the electric vehicle industry regarding service turnaround times. This initiative demonstrates Ola Electric Mobility's focus on improving customer experience and reducing vehicle downtime.

Strategic Expansion Plans

The Bengaluru center serves as the pilot location for this service model, with Ola Electric Mobility planning to replicate this concept across multiple cities in India. The nationwide expansion strategy indicates the company's commitment to building a robust service infrastructure to support its growing customer base.

Customer Service Enhancement

This initiative addresses a critical aspect of electric vehicle ownership - reliable and quick service support. By guaranteeing same-day service completion, the company aims to enhance customer confidence and satisfaction, potentially setting new industry standards for service delivery in the electric vehicle segment.

Ola Electric Mobility's introduction of same-day service guarantee centers, starting with Bengaluru and planning for nationwide expansion, represents a significant move to enhance the customer service experience in the electric vehicle sector.