Ola Electric three-wheeler spotted testing for the first time, launch confirmed by MD
Ola Electric is poised to enter the three-wheeler segment, with Managing Director and Chairman Bhavish Aggarwal confirming that the company has been working on this development for some time. The three-wheeler has also been spotted testing for the first time in India.
Aggarwal emphasised that their aim is to bring the three-wheeler to market soon. He highlighted that this category has always been part of the company’s long-term plans.
“Our effort is to bring [the three-wheeler] to market soon enough,” Aggarwal said, adding that Ola Electric has already showcased some of the technology it intends to leverage for this product. The manufacturing expertise gained through their electric two-wheelers is easily transferable to three-wheelers, which will accelerate the process when the company decides to launch its new products.
Leveraging Experience from Ola Cabs Platform
Aggarwal noted that Ola Electric’s involvement with three-wheelers stems from the company’s extensive interaction with drivers on the Ola Cabs platform. This has provided valuable insights into the specific challenges faced by drivers, including their interest in switching to electric vehicles. Understanding these market dynamics is crucial for Ola Electric as it navigates the transition to EVs, particularly in the commercial sector.
Adapting Strategy Amid Competitive Pressures
The company’s recent loss of market share has been attributed to increasing competition in the electric vehicle space, with Aggarwal acknowledging that competitors have improved their offerings and sales strategies. However, Ola Electric is recalibrating its strategy by diversifying its product range and expanding its distribution channels.
The company plans to go beyond its current network of company-owned stores by utilising new platforms such as the Open Network for Digital Commerce (ONDC). In addition, Ola Electric will soon introduce several hundred non-company-owned outlets across the country. These agents will help broaden the company’s reach and improve market penetration.
Future Expansion Plans
In addition to the upcoming three-wheeler, Ola Electric has plans to introduce electric motorbikes and other vehicle types as part of its near-term growth strategy. This diversification will help the company boost its market share while expanding its presence in the Indian EV market.
Despite its focus on expansion, Ola Electric remains committed to profitability. Aggarwal stressed that while the company is focused on increasing volumes and market share, profitability remains a key goal to ensure sustainable growth.
PLI Scheme and Financial Outlook
Ola Electric also benefits from the Indian government’s Production Linked Incentive (PLI) scheme, which has contributed to their financial health. According to Aggarwal, this initiative adds a mid-single-digit percentage to the company’s overall revenue.
Additionally, Ola Electric is on the verge of achieving break-even in earnings before interest, tax, depreciation and amortisation (EBITDA) in its EV business. The company views this milestone as crucial to its long-term financial sustainability as it continues to expand its EV offerings and distribution footprint.
With aggressive plans to increase product diversity and reach, Ola Electric is positioning itself to regain and potentially increase its market share in India’s growing electric vehicle sector.
