The Rise of Ola Electric
Ola Electric’s Strategic Price Reduction Strategy Boosts Sales and Market Share
In a bold move last week, Ola Electric announced a significant reduction in the prices of its popular two-wheeler scooters, resulting in a surge in sales.
The company slashed the prices by approximately Rs 25,000 per unit, leading to a remarkable increase in sales of around 10,000 scooters in just three days.
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Sources suggest that Ola Electric witnessed a threefold increase in sales of its S1 scooters portfolio, with an average of over 3000 units sold per day, totaling to approximately 10,000 scooters in the last 72 hours. The exact figures for EV two-wheeler sales in February will be officially available in the first week of March through government VAHAN data.
The price reduction announcement on February 16th saw the prices of Ola Electric’s battery-powered scooters, including the S1 Pro, S1 Air, and S1 X+, reduced to Rs 129,999, Rs 104,999, and Rs 84,999 respectively until the end of February.
This strategic move to lower prices aligns with the company’s recent qualification for the government’s production-linked incentive (PLI) scheme, with both the S1 Air and S1 Pro scooters receiving PLI certification.
Sources familiar with the matter highlighted that Ola Electric is the sole two-wheeler manufacturer to benefit from two government subsidies under the PLI scheme, receiving a significant financial advantage of Rs 15,000 to Rs 20,000 on each scooter granted under PLI.
The company attributed the price reduction to its robust cost structures, vertically integrated in-house technology, manufacturing capabilities, and eligibility for manufacturing incentives.
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Despite facing stiff competition, Ola Electric continues to dominate the market share among EV manufacturers in India, boasting a 40% share in January with over 32,293 scooters sold, surpassing competitors like TVS Motor and Bajaj.
The company’s strategic expansion into more affordable models, exemplified by the recent launch of the S1X scooters starting at Rs 79,999 per unit, underscores its commitment to accelerating EV adoption.
With a current manufacturing capacity of 1 million electric vehicles per annum in Krishnagiri, Tamil Nadu, Ola Electric is poised to double its capacity. Bhavish Aggarwal, the co-founder and managing director of Ola Electric, revealed plans to increase the total manufacturing capacity to 2 million within the next six to nine months, with the potential to expand up to an impressive 10 million per annum in the long term. This ambitious growth trajectory solidifies Ola Electric’s position as a key player in the rapidly evolving EV market in India.
Considering ambitious plan it seems to be, The Rise of Ola Electric.
