Even as Ola Electric‘s shares have given a significant 60 per cent gain since its listing last week despite pessimism towards its IPO, the company’s founder Bhavish Aggarwal is confident on the electric vehicle company’s outlook going forward on the back of Ola’s flagship ‘Bharat Cell’, new launches, and the government’s clean energy push.
“We are the largest two-wheeler EV company in the world, excluding China. In the overall electric vehicle market, Ola Electric is currently the fifth-largest in the world by market capitalisation ($5.68 billion), following Tesla, Rivian, VinFast Auto, Lucid Motors; and fourth-largest by revenue (0.68 billion) within just three years. One day, we will be No. 1,” Aggarwal, who is the chairman and MD of the company, said on August 15 during the company’s annual conclave ‘Sankalp’ at Krishnagiri, Tamil Nadu.
Indigenous Battery Cell
The company has set up India’s first gigafactory to manufacture battery cells at Krishnagiri, Tamil Nadu. Out of the 5-GWh installed capacity, 1.5 GWh is already live. The company plans to expand it to 100 GWh capacity by 2030 in three phases, with the first one with 5 GWh already installed, the second phase for 20 GWh will be set up by 2026, and finally, the third phase for 100 GWh by 2030.
“We have developed our own 4680 Battery Cell, the ‘Bharat Cell’. It is a bigger one as compared to the existing ones in the market. This is the 5G of cells. It is 5x energy and charges 1.5x faster, with over 70 patents,” Bhavish Aggarwal said.
The company plans to use this in-house battery cell in Ola’s products from April 2025 (Q1 FY26), the company’s founder said, while demonstrating an Ola scooter running on the 4680 Battery Cell.
Apart from vehicles, this indigenously developed battery cell pack can also be used to create microgrids across the country to supply very cheap electricity to villages, and as a power back-up for homes, he said.
Electric Two-Wheeler New Launches
After having established as a leading EV scooter player in the country, Ola Electric Mobility on August 15 also launched its bikes — the Roadster series.
The company has launched three models in bikes — Roaster X, Roadster, and Roadster Pro — with prices starting at Rs 74,999, Rs 1,04,999, and Rs 1,99,999 respectively. Deliveries of these bikes will begin from Q4FY25 onwards. Roadster Pro delivery will begin in Q4FY26.
Two more models are also in the pipeline.
Ola’s AI, Cab, Other Segments
Bhavish Aggarwal said Ola will bring to the market the first indigenously designed and developed family of chips for AI, general computing and Edge by 2026 under its Krutrim venture.
He said its AI chatbot Krutrim will design and produce India’s first AI silicon chip by 2026 that is custom-built for complex AI workloads. The chip will enable the development of faster and more efficient AI systems, marking a major milestone in achieving India’s technological sovereignty
The Ola group on August 15 also rebranded its ride-hailing service as ‘Ola Consumer’, announced a partnership with ONDC and launched automated warehousing solutions to cater to quick commerce requirements.
He said Ola is fulfilling the government’s vision of clean energy, for which PM Narendra Modi has announced various programmes.
What Analysts Say
Ola Electric Mobility’s shares have given over 60 per cent gains in a week since listing on August 9. It has received interest from various quarters. The company has also received its first ‘buy’ recommendation, with brokerage firm HSBC giving a price target of Rs 140.
HSBC said EV manufacturing costs may fall significantly by FY27/28, while internal combustion engine (ICE) scooters may go up due to emission standards. It added that the barrier to e2-wheelers switching may fall but Ola’s battery venture may be a success.
Saji John, senior research analyst at Geojit Financial Services, said Ola is likely to act as a catalyst for boosting investors’ confidence and could help accelerate the growth and adoption of electric two-wheelers across the country. It is the only automaker in India approved for both PLI schemes for advanced automotive technology and cell chemistry batteries, said .
“Despite profitability challenges and a loss in FY24, the company is poised to enhance profitability in the long term through improved scalability and by vertical integration. We expect the debut will encourage other players to unlock their value and validate their presence in EV expansion,” he said.
In its recent report, Nomura said motorcycles have been a tougher segment for electrification and the last few launches including Tork, Revolt, Ultraviolette and more have not been successful. However, it estimates 25 per cent on EVs in two-wheelers by FY30.
“With multiple price points and range options from Ola, it would be interesting to watch how customers respond to them,” Namura added.
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