Ola Electric To Launch Electric Three-Wheelers Soon: Bhavish Aggarwal

Bhavish Aggarwal-led Ola Electric is gearing up to enter the electric three-wheeler (3W) market to take on the likes of Euler Motors, Piaggio, Mahindra Electric, among others.

Ola Electric is developing an in-house electric three-wheeler and plans “to bring it to the market soon”, CEO and managing director Aggarwal told CNBC-TV18. However, he did not provide a specific timeline for the launch.

Aggarwal said that erickshwas have been on the company’s radar since its inception and it has also demonstrated technology focussed on the product.

Ola Electric’s planned foray into the EV 3W segment has been influenced by the company’s interaction with driver partners on the Ola Cabs platform on themes such as the challenges facing them and their propensity towards electric vehicles.

As per a separate report by The Economic Times, Ola Electric might unveil its 3W EV, presumably named ‘Raahi’, within the next 3-4 months.

Ola Electric’s forthcoming EV 3W Raahi reportedly has a minimalist design with the vehicle’s front profile equipped with square headlights, a large windshield, A-pillar mounted outside rear view mirrors (OVRMs) and doors to ensure cabin safety.

Apart from the passenger version, Ola Electric is also expected to launch a goods carrier variant of its 3W EV to cater to its diverse clientele, as per the report.

Ola Electric’s entry into the Indian electric 3W market will directly pit it against incumbents such as Mahindra, Bajaj and Piaggio, among others, who currently offer their products in the range of INR 2 Lakh to INR 3.5 Lakh.

Ola Electric could price its upcoming EV 3W below the industry’s upper price range, mimicking the pricing undercut approach it has taken with its Roadster series of ebikes to lure customers.

As per Vahan data, sales of electric 3Ws surged 66% year-on-year to 5.8 Lakh units in 2023. Moreover, electric 3Ws made up 50% of overall three-wheeler sales that year.

It is pertinent to note that Ola Electric’s consolidated net loss widened 30% to INR 347 Cr in the June quarter of the financial year 2024-25 (Q1 FY25) from INR 267 Cr in the year-ago quarter. With its EV 3W bet, the company will look to chart a course to profitability. 

During the interaction with CNBC-TV18, Aggarwal said Ola Electric’s EV business is close to breaking even on an EBITDA level. 

This comes at a time when the Centre is looking to accelerate EV penetration in the country. Recently, union minister for heavy industries H. D. Kumaraswamy said that the Centre will roll out the third edition of its demand incentive scheme for EVs, FAME-III in the next two months.

Shares of Ola Electric ended Thursday’s trading session 4% higher at INR 115.25 apiece on the BSE.