OLA Electric manufactures Electric Vehicles and certain core EV components like battery packs, motors and vehicle frames at the Ola Future factory. OLA Electric is a pure EV player in India and is building vertically integrated technology and manufacturing capabilities for EVs and EV components, including cells. They have delivered four products and additionally announced six new products since the first product announcement in August 2021.
Company had the highest revenue of all Indian incorporated electric 2Ws OEMs from E2W sales in FY 2023. Within nine months of delivering first EV scooter in December 2021, OLA Electric became the best-selling E2W brand in India in terms of monthly E2W registrations on the VAHAN Portal of the Ministry of Road Transport and Highways.
Strengths And Risks
+ Market Leader in Fast Growing Market: OLA Electric's exclusive and singular focus on EV enables them to leverage on this transition in the growing Indian 2W market. E2W penetration in India is expected to expand from 4.5% of domestic 2W registrations sales on the VAHAN portal in Fiscal 2023 to 41-56% of the domestic 2W sales by Fiscal 2028
+ In-house R&D and Technology Capabilities: Company undertakes R&D activities in India, the UK and the US, focused on designing and developing new EV products and core EV components, such as battery packs, motors and vehicle frames and spent nearly 40% of total income on R&D in last fiscal.
+ Founder Led Company: Company's Founder, Chairman and MD, Mr. Bhavish Aggarwal, is an entrepreneur who founded OLA Electric, in addition to Ola Cabs, in 2010. He has received several accolades such as India 30 under 30 from Forbes India in 2014, Entrepreneur of the Year from the Economic Times in 2017, Top 100 Most Influential People by Time Magazine in 2018 and featured in the TIME100 Climate List in 2023 as one of the most innovative leaders globally.
+ Manufacturing at Scale: The Ola Future factory is the largest integrated and automated E2W manufacturing plant in India by an E2W-only OEM. The Ola Future factory had an installed capacity of one million units per year.
- Limited Operating History: OLA Electric a limited operating history and has incurred losses and negative cash flows from operations. Company may continue to incur operating losses in the near term as they invest in business and expand the product portfolio, build capacity and scale their operations.
- Quality Risk: With limited operating history, electric vehicles may contain defects, do not perform as per industry standards, or fail to meet the performance levels advertised. It can impact company's brand and reputation and losses due to returns/replacements etc.
be adversely impacted,
- Government Incentives: Any reduction or elimination of government incentives such as the Faster Adoption and Manufacturing of Electric (FAME) subsidy and benefits under the PLI scheme can impact EV pricing and thus, the demand for EVs.
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