 "Ola Cabs CEO Bhavish Aggarwal")
In a direct challenge to legacy two-wheeler companies, Bhavish Aggarwal, founder and chief executive officer of Ola Electric, has asked them to shut down their internal combustion engine (ICE) scooter production and, instead, invest in making “meaningful” and “quality” two-wheelers.
On Independence Day, the company launched four new electric scooter models in various price ranges and also showcased four different electric motorbikes, which will be rolled out by the end of next year. With this, Ola takes a firm lead over its legacy competitors in showcasing its range of electric two-wheelers.
“Legacy two-wheeler companies should now close down the production of ICE scooters and invest in making meaningful and quality two-wheelers for their customers,” Aggarwal told Business Standard.
Asked whether his new electric scooters were positioned to wean away ICE scooter buyers in various segments to their electric equivalents in 100-150 cc, Aggarwal said: “Those who view the electric scooter market from the lens of an ICE vehicle (cubic capacity equivalent) are bound to remain in the chains of the past. The electric market is very different.”
With a share of over 37 per cent of the electric two-wheeler market in July, Ola is already the number one player in the field. The industry sold around 0.7 million electric two-wheelers in 2022, and the government’s target is to hit 2.4 million this year. However, after the uncertainty over the FAME 2 subsidy, it does not seem likely that the target for FY 24 will be achieved.
Aggarwal said Ola had done its bit to end the ICE age — the company had stated that it should end by 2025 — through the launch of four electric scooter models. “Our portfolio now has five scooters, from Rs 80,000 to Rs 1,50,000, and covers all price points. With the new range, I firmly believe that customers will now have no reason to buy an ICE scooter,” he said.
He said ICE players, if they had any doubts, should go to Ola’s 1000-odd outlets and see how consumer choices had changed.
Responding to the question as to why e-scooter volumes were still very small, Aggarwal said, “That will change. The launch of these five scooters will help us ramp up volumes faster as now we have an EV product at every price point. We have expanded our capacity to 1 million already and will further expand to 2 million by the end of the year.”
Aggarwal also pointed out that control over cell battery technology and the raw materials used for it had been a crucial part of their strategy, as key parameters like fast charging, range, weight of the vehicle were dependent on that. “We gave a live demonstration of our cell battery on Independence Day and its production will start soon. It will be available for use in our vehicles by the middle of next year. We expect to reduce the cost of production of batteries by 30 per cent to 40 per cent eventually.”
Would the company bid for lithium reserves, which are up for auction in Jammu & Kashmir, to safeguard its key raw material? “We have not made up our minds, but will take a strategic call soon,” Aggarwal said. “We could also partner with someone.”
