Ola CEO Bhavish Aggarwal Explains Why They’re Not Building The Electric Car
Ola Electric, currently the largest electric two-wheeler manufacturer, recently shared its plans to enter the electric car market as well. However, following the launch of its first-ever electric motorcycle, the company has officially announced that it is scrapping the plans to launch its much-anticipated electric luxury car project. This decision was recently confirmed by Bhavish Aggarwal, Founder and CEO of Ola Electric.
Ola Electric Car: Not Coming
Recently, during an interaction with PTI, Aggarwal elaborated on the reasons behind this surprising decision. He emphasized that the company is currently committed to products that are more relevant to the Indian market. Ola Electric first unveiled its plans for an electric sports car with an all-glass roof back in 2022.
The plans were announced during its annual event on August 15, 2022. The EV maker at the time promised a vehicle that could challenge the leading electric cars in the Indian market. Its main highlights were a range of 500 kilometers on a single charge and a 0-100 km/h sprint time of just four seconds.
Why Has Ola Scrapped Its Plans for an Electric Car?
Bhavish Aggarwal, while announcing this decision, explained, “Our vision is to build products relevant for India and build technologies to enable those products at scale. We’re going in a sequence, starting with two-wheelers and then moving to other products.” Aggarwal emphasized that this decision highlights the company’s broader strategy of prioritizing profitability and scalability.
Ola IPO and Its Way to Profitability
As per reports, Ola Electric’s decision to pull the plug on the luxury car project comes due to the company’s recent initial public offering (IPO). The IPO, which saw a significant surge in pricing, has placed additional pressure on the company to deliver profitability. According to Aggarwal, the focus has now shifted towards products that can be produced and sold at scale in the Indian market.
Aggarwal also highlighted that while the company’s automotive segment was almost at break-even in terms of EBITDA in the first quarter of this fiscal year, the one-time reversal of approximately Rs 30 crore due to changes in the government’s standard operating procedures for PLI rules impacted the financial outcome.
Despite these setbacks, Bhavish Aggarwal remains optimistic about the future. He pointed out that Ola Electric’s roadmap to profitability hinges on higher volumes. He added that it also involves vertical integration of the supply chain and in-house production of cells.
Bhavish Aggarwal also stated, “India needs to build a sustainable paradigm of energy and automotive. The global solution for sustainability is (electric) luxury cars… That’s not relevant for India. India is (electric) two-wheelers, three-wheelers, maybe small cars.”
Ola Electric’s Product Line
Now that the electric car project has been shelved for now, Ola Electric has not completely ruled out the possibility of revisiting it in the future. The company has stated that for now, its focus is firmly on its core products—electric scooters and motorcycles. On August 15 this year, at its Sankalp 2024 event, Ola Electric showcased its entry into the electric motorcycle segment with the launch of the Roadster.
The new Ola Electric Roadster will be available in three variants. Of these three, the Roadster Pro, which will be the flagship model of this series, will offer a range of up to 579 kilometers in the top-spec variant. It will also boast a top speed of 194 kmph. Apart from this, at the event, Bhavish Aggarwal also showcased the in-house battery cell that they have developed.
During the event, Aggarwal also highlighted the importance of the company’s ‘Bharat 4680’ cell. He stated that it is expected to be integrated into Ola’s vehicles starting in Q1 FY26. This move is part of the company’s strategy to further enhance margins. This will eventually help them move closer to profitability by reducing reliance on external suppliers and increasing in-house production capabilities.