Ola Electric to launch electric autorickshaw ahead of planned IPO, says report

Ola Electric has been developing Raahi, for a few years as part of its broader strategy to enter the commercial vehicle sector. It will enter a competitive market, challenging established players such as Mahindra Treo, Piaggio Ape e-city, and Bajaj RE in the electric three-wheeler space.

Insiders suggest that Ola Electric is gearing up to make significant announcements, including updates on its gigafactory, in the coming months before its anticipated initial public offering (IPO), the report added.

Ola Electric did not respond to queries, the report added.

Market Trends & Future Plans

Competitors such as Mahindra, Piaggio, and Bajaj price their e-autorickshaws between ₹2 lakh to over ₹3.5 lakh, based on the model and additional features.

In terms of market performance, Ola Electric held a commanding 41 percent share in the electric scooter segment as of February, selling 33,722 units. Competitors such as TVS Motor, Bajaj Auto, and Ather Energy accounted for 17.7 percent, 14.2 percent, and 11 percent of the market share, respectively.

According to data from the government’s transport website Vahan, electric three-wheeler sales witnessed a substantial surge in 2023, surpassing 580,000 units, marking a 66 percent increase from 2022. Electric three-wheelers accounted for over 50 percent of total three-wheeler sales in 2023.

Ola Electric is also intensifying its efforts in the electric two-wheeler market, where it holds a leading position. In February 2024, the company extended the battery warranty for all scooter variants to eight years. Additionally, plans include setting up 10,000 fast-charging points, selling portable fast chargers to customers, and expanding the service centre network to 600 by April.

Ola filed a draft red herring prospectus (DRHP) in December 2023, aiming to raise up to ₹5,500 crore through a fresh issue, along with an offer for sale of 95.2 million shares by existing investors.

Founder and CEO Bhavish Aggarwal also announced plans to establish a gigafactory by the end of the current quarter, allocating ₹1,226 crore from the anticipated IPO proceeds for this purpose.

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Published: 13 Mar 2024, 07:24 AM IST