Ola Electric is planning to disrupt the electric vehicle market with the expected launch of its electric autorickshaw, reportedly named ‘Raahi’, targeted directly at consumers. The company’s strategic move marks a significant step towards its broader ambition to penetrate the commercial vehicle sector, challenging established players like Mahindra Treo, Piaggio Ape e-city, and Bajaj RE in the electric three-wheeler space.
Anticipated Market Disruption and Future Plans
With Ola Electric gearing up for major announcements, including updates on its gigafactory, ahead of its anticipated IPO, industry insiders anticipate a paradigm shift in the electric vehicle landscape. The market trends indicate a growing demand for electric three-wheelers, with sales witnessing a substantial surge in 2023, surpassing 580,000 units and accounting for over 50% of total three-wheeler sales. Ola Electric’s dominance in the electric scooter segment, commanding a 41% market share as of February, underscores its strong foothold in the electric vehicle market.
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. Ola Electric’s aggressive expansion plans include setting up 10,000 fast-charging points, selling portable fast chargers to customers, and expanding the service center network to 600 by April. The company’s commitment to innovation and sustainability is further evident in its decision to extend the battery warranty for all scooter variants to eight years.
Ola Electric’s ambitious growth trajectory is reinforced by its plans 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, as outlined in the draft red herring prospectus filed in December 2023. Founder and CEO Bhavish Aggarwal’s vision to establish a gigafactory by the end of the current quarter, with a significant allocation from the anticipated IPO proceeds, underscores the company’s commitment to driving innovation and shaping the future of mobility in India.
