Ola Electric Q3 results: Company reports a wider loss of Rs 564 crore

India's top electric two-wheeler maker Ola Electric reported a wider quarterly loss on Friday, hurt by heavy discounts it offered to fend off rising competition.

 

The SoftBank-backed firm reported a loss of Rs 564 crore ($64.51 million) in the October-to-December quarter, compared with a loss of Rs 376 crore a year earlier.

 

Its shares dropped 2.6 per cent after the results.

 

Ola Electric is the top seller of electric two-wheelers in India by number of vehicles sold, but its lead over legacy rivals such as Bajaj Auto and TVS Motor has narrowed as they launch newer models priced near Ola's scooters.

 

 

Ola Electric, which launched its first scooter in late 2021, has yet to turn a profit, but hopes that manufacturing its own battery cells should help it make profits.  READ: Mazagon Dock Shipbuilders Q3FY25: Net profit rises 30% to Rs 768 crore

 

During the December quarter, which coincides with festivals in India, Ola Electric offered customers hefty discounts on entry-level scooters, effectively slashing their showroom price by half to as low as Rs 50,000.

 

That, analysts said, dragged revenue down 19.4 per cent to Rs 1,045 crore.

 

"October saw strong performance fueled by festival sales, however the overall quarter was weak due to high competitive intensity and service challenges," the company said.

 

Ola Electric's entry-level models made up one-third of its volumes, higher than a mere 4 per cent a year before.

 

Its total expenses dropped, with raw material costs “including cells“ declining about 29 per cent.