In an exciting development for the electric vehicle industry, Ola Electric is set to launch its much-anticipated electric autorickshaw ahead of its IPO . Potentially named Raahi, the company has been working on this product for years, as part of its long-term plan to enter the commercial vehicle business. With the launch expected later this month, Ola Electric aims to revolutionize the e-rickshaw segment and provide consumers with a sustainable and efficient mode of transportation.
The Rise of Electric Three-Wheelers
Electric three-wheelers have gained significant popularity in recent years, owing to their eco-friendly nature and low operational costs. In 2022, over 580,000 electric three-wheelers were sold, marking a staggering 66% increase from the previous year. This surge in demand highlights the growing preference for electric vehicles in India, as consumers become more conscious of their environmental impact.
The Competition: Mahindra Treo, Piaggio Ape e-City, and Bajaj RE
As Ola Electric prepares to enter the electric three-wheeler market, it faces competition from established players such as Mahindra, Piaggio, and Bajaj. These companies have already made their mark in the segment with their offerings like Mahindra Treo, Piaggio Ape e-City, and Bajaj RE. Ola Electric’s Raahi aims to challenge their dominance by providing a compelling alternative that combines affordability, performance, and sustainability.
Ola Electric’s Pricing Strategy
When it comes to pricing, Ola Electric is expected to remain competitive with its counterparts in the electric three-wheeler segment. Currently, Bajaj, Mahindra, and Piaggio offer e-autorickshaws with prices ranging between Rs 2 lakh and Rs 3.5 lakh, depending on the model and additional features. Ola Electric aims to offer a similar price range, ensuring affordability for consumers while maintaining high-quality standards.
Ola Electric’s IPO Plans
Ola Electric’s foray into the electric autorickshaw market aligns with its broader plans for growth and expansion. The company is set to launch its Initial Public Offering (IPO) after the release of Raahi. In December last year, Ola Electric filed a draft red herring prospectus (DRHP) with the aim of raising up to Rs 5,500 crore through a fresh issue. Additionally, existing investors plan to sell 95.2 million shares. The IPO will position Ola Electric as a key player in the electric vehicle market and provide the necessary capital for future endeavors.
Infrastructure Development: Charging Points and Service Centers
To support the growing demand for electric vehicles, Ola Electric is investing in infrastructure development. The company plans to set up 10,000 charging points by the end of the next quarter, ensuring convenient access to charging facilities for electric vehicle owners. Additionally, Ola Electric aims to expand its service center network from the current 400 to 600 by April, ensuring prompt and efficient after-sales support for its customers.
The Gigafactory: Manufacturing Battery Cells
Ola Electric’s commitment to sustainable and self-reliant manufacturing is exemplified by its plans to open a gigafactory. The gigafactory will be used for manufacturing battery cells, a crucial component of electric vehicles. The company aims to allocate Rs 1,226 crore from the projected IPO proceeds for this ambitious project. With the gigafactory, Ola Electric aims to reduce dependency on external suppliers and create a robust supply chain for its electric vehicles.
Ola Electric’s Dominance in the Electric Two-Wheeler Segment
Prior to its entry into the electric autorickshaw market, Ola Electric has already established itself as a market leader in the electric two-wheeler segment. As of February, the company held a significant 41% market share, with competitors like TVS Motor, Bajaj Auto, and Ather Energy trailing behind. Ola Electric’s success in the two-wheeler segment positions it well for further growth and expansion in the electric vehicle industry.
Financial Performance and Outlook
Ola Electric’s revenue from operations in the fiscal year ended March 31, 2023, stood at Rs 2,631 crore, with a net loss of Rs 1,472 crore. In the quarter ended June 30, 2023, the company reported a net loss of Rs 267 crore on operating revenue of Rs 1,243 crore. Despite these financial challenges, Ola Electric’s IPO and ongoing expansion plans indicate a positive outlook for the company, with a focus on long-term growth and sustainability.
Road Ahead
Ola Electric’s upcoming launch of the Raahi electric autorickshaw signifies a significant step forward in the electrification of India’s transportation system. With its competitive pricing, commitment to infrastructure development, and plans for a gigafactory, Ola Electric is poised to disrupt the electric vehicle market. As consumers increasingly embrace sustainable mobility solutions, Ola Electric’s e-Rickshaw promises to provide a reliable, cost-effective, and eco-friendly option for urban transportation. With its IPO on the horizon, Ola Electric is well-positioned to shape the future of electric mobility in India and beyond.
