Ola Electric Set To Enter Commercial EV Vehicles Space By 2023

SUMMARY

Ola Electric will reportedly introduce three-wheeler e-vehicles with a gross weight of under 3.5 tons by next year

Ola Electric founder Bhavish Aggarwal has stated that teams are working on commercial vehicles that use the company’s proprietary software, cells and electronics

The moves comes on the back of the startup claiming that the space has high demand and attractive margins

Ola Electric is reportedly planning to enter the commercial EV market and compete with automotive giants Tata Motors and Mahindra & Mahindra. According to Bhavish Aggarwal, the company will release introductory products in the three-wheeler and four-wheeler categories.

He stated that teams at Ola Electric are working on commercial EV products that use the company’s proprietary software, cells and electronics.

According to reports, Ola Electric will introduce e-vehicles with a gross weight of under 3.5 tons by next year as the space has high demand and attractive margins.

Contradicting that many existing commercial EVs are not very appealing, Ola Electric plans to redesign its products to balance cost and value. Since it also does not follow the dealership model, the company claims to be more cost-effective than its competitors.

Ola Electric’s decision to join the three-wheeler EV market comes on the back of its plans for large-scale electrification of its ride-sharing service. Further fuelled by the demand for EVs by delivery-focussed startups, the market is wide open for disruption.

Tata Motors has been conducting extended trial runs of its Tata Ace EV and has signed MOUs with Amazon, Flipkart, and Big Basket to deliver 39K vehicles in various locations.

As the company plans to scale its business verticals, it is also geographically expanding its reach. The EV startup forayed into Nepal and Italy, announcing plans to launch Ola S1 and S1 Pro scooters beginning in 2023.

It has also set up local distribution in both countries, with plans to launch in Latin America, Southeast Asian Nations region and the European Union.

It will also manage to develop a production capacity to build 10 Mn two-wheelers and 1 Mn passenger cars and gradually, build 100 Gwh of advanced chemistry-based battery storage capacity.

Ola Electric also recently launched its third escooter in India. The Ola S1 Air would be available within the affordable category and will be priced at INR 79,999.