Ola Electric is poised to revolutionise the electric autorickshaw sector with the anticipated launch of its latest offering, likely to be named ‘Raahi’. According to sources cited by The Economic Times, the introduction of ‘Raahi’ marks a strategic move by Ola Electric to directly target consumers in the commercial vehicle segment, scheduled for later this month.
Market Competition and Expansion Plans
Having invested years in its development, Ola Electric’s ‘Raahi’ will enter a competitive landscape, challenging established players such as Mahindra Treo, Piaggio Ape e-city, and Bajaj RE in the electric three-wheeler space. Despite the stiff competition, insiders suggest that Ola Electric is gearing up to make significant announcements, including updates on its gigafactory, in the lead-up to its anticipated initial public offering (IPO).
Competitors typically price their e-auto rickshaws between ₹2 lakh to over ₹3.5 lakh, depending on the model and additional features. Despite this, Ola Electric has demonstrated its prowess in the electric vehicle market, commanding a dominant 41 percent share in the electric scooter segment as of February, with sales reaching 33,722 units. This solidifies its position ahead of competitors like TVS Motor, Bajaj Auto, and Ather Energy.
Rising Demand for Electric Three-Wheelers
Data from the government’s transport website Vahan reveals a significant surge in electric three-wheeler sales in 2023, surpassing 580,000 units, reflecting a remarkable 66 percent increase from the previous year. Notably, electric three-wheelers accounted for over 50 percent of total three-wheeler sales in 2023, underscoring the growing preference for eco-friendly mobility solutions.
Diversified Product Offerings and Expansion Initiatives
Apart from the electric autorickshaw segment, Ola Electric continues to strengthen its presence in the electric two-wheeler market. Recent initiatives include extending the battery warranty for all scooter variants to eight years and plans to establish 10,000 fast-charging points, sell portable fast chargers to customers, and expand the service center network to 600 by April.
Upcoming IPO and Gigafactory Plans
Ola Electric’s ambitions are further evidenced by its filing of a draft red herring prospectus (DRHP) in December 2023, with aims to raise up to ₹5,500 crore through a fresh issue. Founder and CEO Bhavish Aggarwal has also announced plans to allocate ₹1,226 crore from the anticipated IPO proceeds to establish a gigafactory by the end of the current quarter, signaling the company’s commitment to sustainable and scalable manufacturing practices.
Despite challenges posed by existing competitors, Ola Electric’s strategic initiatives and innovative product offerings position it as a formidable force in the rapidly evolving electric vehicle landscape, poised to drive the future of eco-friendly urban mobility in India.
