New Delhi, March 5 As it continues to struggle on various fronts amid job cuts, Ola Electric Mobility has now failed to kick off cell manufacturing at its Gigafactory on time.
According to a stock exchange filing by the company, “We would like to inform you that we are in receipt of a letter dated 3 March 2025 from IFCI Ltd. 'Subject Non-Achievement of Milestone-1' according to Schedule M of the Programme Agreement dated 28 July 2022.”
“The company is actively engaged with the relevant authorities in this regard and is in the process of filing an appropriate response,” said Ola Electric.
IFCI is the project management agency for the production-linked incentive (PLI) scheme for advanced chemistry cells (ACCs). Ola Electric's subsidiary — Ola Cell Technologies Pvt Ltd — is a beneficiary of the PLI scheme.
According to industry sources, Ola Electric has essentially missed the deadline to start cell manufacturing operations at its Gigafactory.
Similar letters have been sent to Reliance New Energy Pvt. and Rajesh Exports Ltd — the two other beneficiaries of the PLI scheme.
Bhavish Aggarwal-run Ola Electric became the first company to win approval under the PLI scheme for localised cell manufacturing in October 2023.
It was awarded the maximum capacity of 20 GwH for its bid and the construction of the Gigafactory therafter.
Amid third-quarter earnings call, Aggarwal indicated that the Gigafactory would go onstream in the first quarter of fiscal 2026.
The plan was to achieve a production capacity of 5 GWh in the first year itself, and 20 GWh by 2027.
A 4,680 NMC cell will be produced first, followed by LFP cells in the next couple of years. Ola Electric has invested Rs 1,200 crore in the Gigafactory to date.
Ola Electric reported a massive net loss of Rs 564 crore in the third quarter (Q3 FY25), an increase of 13.94 per cent compared to a net loss of Rs 495 crore in the previous quarter (Q2 FY25).
On a year-on-year (YoY) basis, the net loss widened from Rs 376 crore in the same quarter last year (Q3 FY24) – a steep 50 per cent increase.
The company has attributed the increased losses to "highly competitive intensity and service challenges" during the quarter.
Ola Electric Mobility is reportedly laying off more than 1,000 employees and contract workers in its second round of job cuts within months.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor