Bhavish Aggarwal, CEO of Ola Electric, outlines a robust three-pronged strategy aimed at securing a dominant position in the electric vehicle (EV) market through future technologies and a localized manufacturing ecosystem. The strategy involves:
- Vertically Integrated Manufacturing: Ola Electric’s gigafactory in Tamil Nadu, with an installed capacity of nearly a million electric scooters and motorcycles, aims to increase production to four million units.
- Research and Development: Emphasizing the importance of developing proprietary technology, Aggarwal plans to enhance product quality and profitability by focusing on in-house innovations. This includes creating their own lithium-ion cells, reducing dependence on external suppliers.
- Local Manufacturing of Lithium-Ion Cells: Aggarwal emphasizes the need for local production of 4680 lithium-ion cells using both NMC and LFP technologies. This move is expected to cut costs and decrease the company’s reliance on imports.
Market Performance:
- Revenue Growth: Ola Electric saw a 90% increase in revenue, reaching Rs 5,009 crore in FY24, primarily due to the success of its S1X and S1Pro scooters.
- Profit Margins: Despite revenue growth, the company’s profit widened by 8% to Rs 1,584 crore, indicating a focus on long-term investment over immediate profitability.
Future Prospects:
- Giga Factory: The new factory aims to localize more production, reducing imports from 37% to 29% in FY24.
- Electric Motorbike Launch: Aggarwal hints at an upcoming launch of three electric motorbike variants, addressing a significant market segment in India’s two-wheeler industry.
- PLI Scheme Benefits: Ola Electric benefits from the production-linked incentive (PLI) scheme, with significant investments in both automotive components and advanced chemistry cells.
Aggarwal’s approach to leverage local manufacturing and proprietary technology positions Ola Electric for substantial growth and sustainability in the competitive EV market.
