Looking to disrupt the booming electric three-wheeler space, OLA Electric, India’s leading electric scooter manufacturer, is all set to launch its first electric auto-rickshaw, the OLA Raahi. This exciting development comes ahead of the company’s much-anticipated IPO, showcasing OLA’s commitment to expanding its electric vehicle (EV) portfolio and capitalizing on the rapidly growing Indian EV market.
Raahi: Taking on the Electric Three-Wheeler Challenge
Christened “Raahi,” which translates to “traveler” in Hindi, OLA’s electric auto-rickshaw is expected to hit the market in the coming months. This strategic move positions OLA to compete directly with established players like Mahindra Treo, Piaggio Ape e-city, and Bajaj RE in the lucrative electric three-wheeler segment.
The Indian electric three-wheeler market has witnessed phenomenal growth in recent years. According to government data, over 580,000 electric three-wheelers were registered in 2023, a staggering 66% increase compared to 2022. This growth trajectory reflects the increasing demand for eco-friendly and cost-effective transportation solutions, particularly in urban areas. Notably, electric three-wheelers currently account for nearly 50% of all three-wheeler sales (including petrol and CNG models) in India, highlighting the rapid shift towards electric mobility.
Pricing and Competition: Will OLA Raahi Rule the Roost?
The current market for electric three-wheelers sees existing models priced between Rs 2 lakh and Rs 3.5 lakh. With OLA’s proven track record of disrupting the electric two-wheeler space through competitive pricing strategies, the industry is eagerly waiting to see the price tag of the OLA Raahi. Given OLA’s dominance in the electric scooter segment, currently selling over 30,000 units monthly and holding a 40% market share, the Raahi has the potential to shake up the electric three-wheeler market as well.
Building the Future: OLA’s Gigafactory and Beyond
OLA Electric is also actively building India’s largest battery cell gigafactory in Krishnagiri, Tamil Nadu. This ambitious project, once completed, will be a game-changer for the Indian EV industry. With a production capacity of 10 GWh (gigawatt-hour) per year, the gigafactory will not only cater to OLA’s existing electric two-wheelers but also pave the way for the production of future electric four-wheelers.
Breaking Reliance on Imports: The Rise of Domestic Battery Production
OLA Electric isn’t the only major player recognizing the critical role of domestic battery cell production in India’s EV future. Reliance Industries and Bengaluru-based Log9 Materials are also gearing up to join the scene. This shift towards domestic battery production will not only strengthen India’s EV ecosystem but also significantly reduce reliance on expensive cell imports. Currently, battery cells account for a significant portion (40-50%) of the overall cost of an electric vehicle. By fostering domestic battery production, India can expect a substantial decrease in EV costs, making them more accessible to a wider consumer base.
Beyond Three-Wheelers: A Glimpse into OLA’s Electric Vehicle Roadmap
In a move showcasing its commitment to comprehensive EV product diversification, OLA unveiled four new electric motorcycle concepts last Independence Day. These futuristic concepts – encompassing adventure, cruiser, roadster, and futuristic styles – cater to a diverse range of customer preferences. Additionally, OLA is actively developing an electric car for a future launch. This multi-pronged approach positions OLA as a key player in shaping the future of electric mobility in India.
Rapid Network Expansion and IPO Dreams
Complementing its product diversification strategy, OLA is also aggressively expanding its charging network infrastructure throughout the country. This ensures a seamless customer experience by providing convenient charging solutions for OLA’s electric vehicles. As OLA gears up for its much-anticipated IPO later this year, these strategic initiatives paint a promising picture for the company’s future and its potential to revolutionize the Indian electric vehicle landscape.
