Ola Halts Electric Car Project, To Focus On Electric Scooters & Bikes

GaadiWaadi –
According to reports, Ola Electric has suspended its electric car project to strengthen its electric two-wheeler business
Ola Electric has put its electric car launch plans on hold to reinforce its electric two-wheeler business, according to reports. A couple of years ago, the brand announced that it would enter the passenger car vertical by bringing in a zero-emission sports car. It was also previewed via teasers in August 2022 before the design patent emerged online nearly a year later.
The Bengaluru-based company noted that it will be capable of achieving zero to 100 kmph in just four seconds and will feature a full glass roof. Ola appears to be taking a different direction now as it plans to raise around 660 million USD. Backed by SoftBank, Ola Electric’s IPO will open for retail subscription on the 2nd of August, 2024.
The stock offering is estimated to value the company between 4.2 billion and 4.4 billion USD. Ola’s plans currently focus on the electric two-wheeler space as both scooters and motorcycles are part of them. The company dominated the electric two-wheeler market last fiscal, contributing to nearly a third of the total sales in India.

Ola saw sales soar from over 1.5 lakh units to over 3 lakh units in FY24, effectively doubling its numbers. The electric two-wheeler sales saw a remarkable 33.3 per cent year-on-year increase in 2023-24, as per data from the Vahan portal. In 2023-24, a total of 9,10,930 electric two-wheelers were sold, a significant rise from the 682,937 units sold in 2022-23.
However, in recent times, mainstream two-wheeler brands like Bajaj Auto and TVS Motor Company are recording good sales numbers with Chetak and iQube respectively. Ola’s electric car project has been postponed for at least two years reportedly with the company focusing on increasing the retail sales of the S1 range and battery production.

Ola engaged external consultants and recruited over 100 employees for the car project, but 30 per cent of the team has since left. The Bengaluru-based brand’s upcoming stock market debut is expected to be one of the largest IPOs this year. It must be noted that despite making losses, Ola has captured a 46 per cent market share in the e-scooter sector within three years of its establishment.
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