Ola Puts Cell PLI Timeline on Backburner to Pursue Profit

The co doesn't believe it needs to build beyond 5GWh capacity for its cell plant until FY28-29

- Ayaan Kartik

Ola Electric Mobility Ltd has said that it will not meet the timelines set by the government to get incentives under the production-linked incentive scheme as it doesn't believe it needs to build beyond 5GWh capacity for its cell manufacturing plant until financial year 2029.

The delay in expanding beyond 5GWh capacity comes as the firm pivots to a more profitability-centric approach than looking at aggressive penetration after reporting a 50% year-on-year drop in revenue to ₹828 crore and a surge in losses to ₹428 crore in the April-June period. However, the company achieved operational profitability in June for its automobile business, which led to an 18% jump in its stock price.

During Ola Electric's quarterly earnings call on Monday, managing director and chief executive officer (CEO) Bhavish Aggarwal said that the company will incur a maximum ₹100 crore penalty for not meeting PLI targets and doesn't believe that PLI incentives are needed to have a profitable business case for the cell plant.

After 5GWh capacity is operationalized and the cell business becomes stable, the company will look to enter the battery storage business and sell the in-house 4680 cells to other companies.

Moreover, the company will also look at relevant export markets for its product.