Ola Electric Mobility is an Indian electric two-wheeler manufacturer, based in Bangalore. Its manufacturing plant is located in Krishnagiri, Tamil Nadu, India.
Ola Cabs is an Indian multinational ridesharing company, headquartered in Bangalore. It also operates in other business verticals including financial services and cloud kitchens. A variety of venture capitalists including Softbank have large stakes in the company.
The new investment comes five months after SoftBank-backed Ola raised $500 million in a round, one of the largest in the internet consumer segment in India, led by Temasek and Warburg Pincus. Ola co-founder and chief executive Bhavish Aggarwal had also invested in that round, the firm said at the time.
Ola Electric, the ride-hailing firm’s electric vehicle arm, has laid out its vision to become a vertically integrated electric mobility player across two-wheeler and passenger vehicle segments. The company calculates the opportunity size at $1 trillion at a volume of 155 million units, according to a Kotak Institutional equities report.
Ola Electric expects to turn cash-flow positive in three quarters.
Has more than 60,000 scooters on the road.
Has experienced one fire incident to date.
It was due to issues with the battery and battery management system.
Planning a series of new EV products across scooters, motorcycles, sedans and SUVs.
The opportunity size is $1 trillion at a volume of 155 million units
Cell costs $150/kWh to reduce to $100/kWh as it moves this in-house.
This would mean a 10-20% reduction in the total cost and an 8.5% improvement at the EBITDA level.
Looking to develop tech for L3 autonomous capabilities, emergency braking and collision avoidance.
Ola Electric has about 4000 units of scooters piled up at the plant, which it calls ‘Future Factory,’ not counting several thousands of units which are ready to be shipped to customers who have pre-ordered the scooter. According to a source in the know, at the time Ola Electric stopped the line on July 21, its daily production was around 100 units against a current installed capacity of 600.
Ola Electric suspended production of its electric scooters at its Krishnagiri, Tamil Nadu plant for nearly a week, according to sources. While the company maintained that the plant was shut for annual maintenance and installation of new machines, three people with information of this development said inventory pile-up was the main reason for downing tools.
The company said the plant is undergoing annual maintenance and installing new machines. ET's sources said Ola had suspended production due to inventory pile-up.
Future Factory, as the plant in Krishnagiri is called, has nearly 4,000 units of electric scooters piled up. The number excludes the thousands of units ready to ship to customers who pre-ordered the EVs, the report said.
Ola had started trial production of its electric scooters range at Future Factory in Krishnagiri in Tamil Nadu's Hosur district in October. The regular production started in the month of December.
“Like most auto companies that go through annual maintenance at their factories, we did too. At no point can this be considered as shutting down production. Hence, clarifying that (information) is untrue,” an Ola spokesperson told ET Prime.
Responding to ET, Ola did not give details on daily production, booking numbers, or duration of the suspension, but clarified that it was brief.
Ola started trial production at the plant, which is called ‘Future Factory’ at Krishnagiri in Hosur district, Tamil Nadu, in October and regular production in December. It has only been around eight months since the production started in earnest.
Ola, which initially had nearly 150,000 bookings, started delivering its scooters in late December. However, it received a high number of cancellations after complaints about the performance and quality of the vehicles.
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