Ola Electric expands into electric motorcycle market following IPO success

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Indian electric vehicle (EV) manufacturer Ola Electric Mobility, fresh off its initial public offering (IPO) that raised $734 million, has ventured into the motorcycle segment with the launch of two new models on Thursday.

This move marks Ola Electric’s expansion into a largely untapped area within India’s massive two-wheeler market, where electric motorcycles currently account for only 1 percent of EV sales.

Ola Electric introduced the “Roadster X,” an entry-level motorcycle with an impressive range of 200 kilometers (124 miles) on a single charge, and the “Roadster Pro,” which boasts advanced features like driver assistance systems and AI-enabled internet connectivity.

The launch comes as EV motorcycle makers in India, such as Revolt and Ultraviolette Automotive, have struggled to gain traction in the price-sensitive market, Reuters news report said. Despite the challenges, Ola Electric continues to lead the electric two-wheeler market in India, capturing 39 percent of sales in July, according to government data.

While the company has seen a 90 percent surge in revenue for the fiscal year ending March 2024, it has yet to achieve profitability. To address this, Ola Electric plans to reduce costs by manufacturing its own batteries starting next year and refining metals in-house over the next three to four years, according to Chairman Bhavish Aggarwal.

The company’s latest move into electric motorcycles follows a series of strategic actions, including a price cut on its scooters earlier this year, in response to reduced government subsidies for EVs. Ola Electric is now positioning itself to capture a broader share of India’s two-wheeler market, aiming to overcome challenges such as high upfront costs and range anxiety that have hindered growth in other regions.

Ola Electric Mobility recently posted loss of Rs 347 crore for the April-June quarter, compared to Rs 267 crore in the same period last fiscal.

Ola Electric said revenue increased 32 percent to Rs 1,644 crore in Q1 FY25, compared to Rs 1,243 crore in the same period last fiscal.

The company delivered 125,198 vehicles in the quarter against 70,575 units in the same period last year.

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