The certification has been granted by the Automotive Research Association of India (ARAI) after testing the product and checking on the localization standards of the components, it added
New Delhi: On Wednesday, Ola Electric said that it had been granted a domestic value addition certificate by the production-linked incentive scheme, which is intended to stimulate the vehicle and auto component industries. Ola Electric said in a statement that the firm had satisfactorily fulfilled the domestic value addition (DVA) requirements of 50%, among other requirements, as required under the Production Linked Incentive (PLI) plan for the automobile and auto component sectors, as established by the Union Ministry of Heavy sectors.
According to the statement, the Automotive Research Association of India (ARAI) certified the product following testing and inspection of the component localization criteria. According to the company, it is now the first two-wheeler manufacturer in India to obtain a DVA accreditation through the PLI program.
“According to a representative from Ola Electric, “the PLI accreditation is a tribute to our vertically integrated production skills and a critical milestone in our goal to expedite India’s journey towards clean transportation.”
The spokesperson continued, “There’s no doubt that the government’s auto PLI scheme will significantly contribute to localizing supply chains, increasing domestic manufacturing, and assisting businesses in realizing economies of scale.”
According to the corporation, starting in FY24, it can receive incentives under the system for a maximum of five consecutive fiscal years. The incentive would be in the range of 13% to 18% of the calculated sales value (DSV).