Ola Set to Shake EV 3W Market: Likely to Undercut Existing Players on Pricing

The electric vehicle (EV) market in India is about to witness a significant disruption as Ola Electric, the popular EV manufacturer, gears up to launch its much-anticipated electric three-wheeler (3W) later this year. Industry insiders suggest that this new offering, tentatively named ‘Raahi’, is poised to challenge established players in the segment with its competitive pricing and innovative features.

Ola’s entry into the EV 3W market comes at a crucial time when the sector is experiencing rapid growth. In 2023, electric 3-wheelers accounted for over 50% of total three-wheeler sales in India, with more than 580,000 units sold – a staggering 66% increase from the previous year. This surge in demand presents a golden opportunity for Ola to capitalize on the market’s momentum.

One of the most exciting aspects of Ola’s upcoming launch is its potential to undercut existing players on pricing. Currently, established brands like Mahindra, Piaggio, and Bajaj price their electric auto rickshaws between INR 2.0 lakh and INR 3.5 lakh. However, sources close to the matter suggest that Ola is likely to price its EV 3W more competitively, potentially undercutting Bajaj’s offerings, which start at INR 3.30 lakh (ex-showroom).

Ola’s ability to offer such competitive pricing stems from its unique position in the EV ecosystem. The company’s vertical integration strategy, encompassing in-house development of key components such as cells, motors, and software, gives it a significant advantage in controlling costs and optimizing performance. This approach is expected to not only make the product more affordable but also accelerate Ola’s path to profitability in the highly lucrative 3W EV segment.

Beyond pricing, Ola’s technological prowess is set to be a game-changer in the EV 3W market. The company plans to equip ‘Raahi’ with category-first features, promising a more spacious and convenient experience compared to existing electric 3-wheelers. Spy images of the vehicle reveal a minimalist design focused on maximizing space and practicality. The front profile showcases square headlights, a large windshield, A-pillar mounted ORVMs, and doors for enhanced cabin safety.

One of the most intriguing possibilities is the potential inclusion of air conditioning – a feature that would set Ola’s offering apart in the segment. If implemented, this could significantly enhance passenger comfort, especially in India’s hot and humid climate, potentially revolutionizing the auto-rickshaw experience.

Ola’s entry into the EV 3W market is further bolstered by its strong presence in the ride-hailing sector through Ola Cabs. This synergy provides an unparalleled distribution advantage, allowing Ola Electric to leverage its existing network for faster EV penetration in the 3W segment. The company can potentially tap into its vast driver-partner base, offering them an easy transition to electric vehicles and ensuring a ready market for its new product.

The launch of Ola’s electric 3-wheeler is expected to happen within the next 3-4 months, aligning with the company’s strategy to expand its footprint in the commercial vehicle sector. In addition to the passenger version, Ola is likely to introduce a goods carrier variant, featuring a customizable loading bay to cater to diverse client needs.

As Ola prepares to enter the EV 3W market, it continues to strengthen its position in the electric two-wheeler segment, where it already holds a leadership role. The company has been enhancing its market presence through extended battery warranties, the establishment of fast-charging points, and an expanded service center network.

The imminent launch of Ola’s electric 3-wheeler marks a significant milestone in India’s EV journey. With its competitive pricing, advanced features, and strategic advantages, Ola is well-positioned to shake up the market and accelerate the adoption of electric vehicles in the commercial sector. As the launch date approaches, all eyes will be on Ola to see how it delivers on its promise of revolutionizing the EV 3W segment.