Ola Electric’s CEO states the focus is on capturing consumer imagination, not just market share, during the Roadster launch

Ola is not concentrating on accumulating market share but rather on winning consumers’ love and imagination, said Ola Co-Founder Bhavish Aggarwal.

Ola Electric Mobility Ltd., the electric vehicle division of the Bengaluru-based company, unveiled its first motorcycle lineup—the Roadster series—during an event on Thursday, where two more motorcycles were also teased.

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At the same event, the company announced the rebranding of Ola Cabs to Ola Consumers. According to Aggarwal, the highlight of the event was Ola’s launch of its new electric motorbike, developed on the same platform.

This decision is not only about expanding their product offerings but also about using their existing setup to improve efficiency and growth, he explained. “As we increase production of our motorbike in the coming months, we’ll make the most of our current factory and investments,” he said. “The bike will begin with the same profit margin as our scooters.”

In the recently reported June-quarter results, changes in government policies led to a Rs 23 crore reversal in the PLI scheme, which impacted the automotive segment just as it was about to become Ebitda positive, Agarwal added.

Despite this challenge, Aggarwal remains confident about the future of the EV business model. “We’ve shown today that EVs are a sustainable business,” he said.

When asked about market share, Aggarwal explained Ola’s strategy. “We’re not focused on market share itself. Our goal is to win over consumers by creating products that spark their interest. That’s why we’ve introduced three new bikes priced between Rs 75,000 and Rs 2.5 lakh to appeal to a wide range of customers. The shift to electric bikes is speeding up, and with little competition, we’re leading the way in this area,” he added.

India’s largest electric two-wheeler maker saw its net loss widen to Rs 347 crore for the three months ending June 30, 2024, up from a loss of Rs 267 crore in the same period last year, according to an exchange filing on Wednesday. The company’s revenue increased by 32% year-on-year to Rs 1,644 crore.

On August 9, 2024, Ola Electric made its debut on the National Stock Exchange of India following an initial public offering that was oversubscribed by more than 4.5 times. Although the stock is listed at par, it has surged by about 71% over four trading sessions. On Friday, the stock rose by more than 15%.