Ola Electric Accelerates Plans for ‘Raahi’ Electric Auto Rickshaw Launch

Ola Electric is getting ready to introduce its electric auto rickshaw in March 2024. The electric vehicle is likely to be named ‘Raahi’.

Details of Electric Vehicles From Ola

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

As per the reports, Ola Electric is preparing to make significant announcements, such as updates on its gigafactory, in the coming months before the launch of its anticipated Initial Public Offering (IPO).

Competition and Future Plans in the EV Sector

The electric vehicles market in India is growing at a substantial pace. Several big players are already in the market. Companies like Piaggio, Mahindra and Bajaj have priced their electric auto rickshaws between ₹2 lakh to more than ₹3.5 lakh, depending on the model and added features.

In February, Ola announced price cuts for a few of its vehicle models, which include S1 Pro, S1 X+ and S1 Air. The company’s flagship model, S1 Pro, was reduced by about ₹17,500, getting its price down to ₹1,30,000 from the previous ₹1,47,500. The S1 Air model is now available for ₹1.05 lakh, and the price of the S1 X+ was dropped from ₹1.10 lakh to ₹85,000. Overall, all these electric two-wheeler vehicles are made more affordable than many of the company’s competitors.

Regarding the market performance, as of February, Ola Electric held a 41% share in the electric scooter segment, where they sold 33,722 units. The competitors of Ola Electric, such as TVS Bajaj Auto, TVS Motor and Ather Energy, accounted for 14.2%, 17.7% and 11% of the market share, respectively.

Ola Electric currently holds a leading position in the electric two-wheeler segment and is also strengthening its efforts. In February 2024, the company extended the battery warranty for all scooter variants to 8 years. Further, the company plans to set up 10,000 fast-charging points, sell portable fast chargers to customers, and expand the service centre network to 600 by April.

As per the report from the Indian government’s transport website Vahan, electric three-wheeler vehicle sales saw a significant surge in 2023, exceeding 5,80,000 units. This marked a 66% increase in sales from 2022. In 2023, electric three-wheelers accounted for more than 50% of total three-wheeler sales.

In December, Ola Electric filed a Draft Red Herring Prospectus (DRHP). The company aims to raise up to ₹5,500 crore through a fresh issue, along with an Offer For Sale (OFS) of 95.2 million shares by existing investors.

Founder and CEO of Ola Electric, Bhavish Aggarwal, also announced the company’s plans to establish a gigafactory by the end of the current quarter, i.e., March 2023, by allocating about ₹1,226 crore from the anticipated IPO proceeds for this purpose.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.