By Akash Sriram and Nandan Mandayam
POCHAMPALLI, TAMIL NADU (Reuters) – Indian electric vehicle maker Ola Electric Mobility launched a new series of motorcycles on Thursday, days after it went public, expanding into an untapped segment in the world’s largest two-wheeler market.
India’s electric two-wheelers are almost entirely scooters, with more expensive motorcycles accounting for barely 1% of overall two-wheeler EV sales.
Smaller EV motorcycle makers such as Revolt and Ultraviolette Automotive – backed by Indian two-wheeler maker TVS and chip company Qualcomm – have struggled with low volumes in the price-sensitive market.
Ola Electric, which raised $734 million in its initial public offering last week, launched two motorcycle variants and claimed that the entry-level “Roadster X” had a range of 200 kms (124.27 miles) on a single charge.
The “Roadster Pro” variant has features such as advanced driver assistance systems and internet-enabled AI technologies, the company said at the launch event.
Electric motorcycles have had greater success in China and Taiwan, helped by government subsidies and a vast EV charging network. However, high upfront costs and range anxiety have been hurdles for growth in other markets.
Ola Electric accounted for 39% of two-wheeler EV sales in the country in July, per government data. Revenue surged 90% in the year March 2024, but it is yet to turn a profit.
In April, it slashed prices of the cheapest of its three scooter models to boost demand after the government reduced EV subsidies, and hopes to cut costs by using its own batteries next year.
The company also plans to refine metals used in its cells in house in the next three to four years, Chairman Bhavish Aggarwal told Reuters on the sidelines of the event, as part of its profitability targets.
($1 = 83.9160 Indian rupees)
(Reporting by Akash Sriram and Nandan Mandayam in Pochampalli; Editing by Janane Venkatraman)
Comments