Ola founder Bhavish Aggarwal confirmed the car project plans in a recent September 2023 interview with Forbes. However, the project has now been put on hold in anticipation of its planned August IPO, during which it aims to raise approximately USD 660 million.
Ola Electric has put its electric car launch plans on hold, choosing instead to prioritize its e-scooter business. The Softbank-backed firm is redirecting its efforts as it prepares for a significant IPO in August, targeting a raise of about USD 660 million.
In 2022, Ola’s founder, Bhavish Aggarwal, announced plans to introduce an electric sports car featuring an all-glass roof that could accelerate to 100 km per hour in just four seconds. He reiterated these ambitions in a September 2023 Forbes interview. Despite this, sources indicate the project has been postponed to focus on two-wheelers and battery production, citing the ongoing challenges of insufficient charging infrastructure in India.
The decision reflects the broader industry context, where electric scooters are gaining traction faster than cars due to rapidly developing infrastructure. By June this year, India saw 483,000 e-scooter sales compared to about 45,000 electric car sales, even as it ranks as the world’s third-largest auto market.
One insider mentioned that Ola’s car project might be delayed for at least two years as the company concentrates on boosting its two-wheeler sales and expanding battery production capacities. This shift in strategy is highlighted by the potential competition the electric car could have offered to major players like Tata Motors in the emerging market.
Ola Electric has not commented on these developments. The upcoming IPO is set to be one of India’s largest this year. Despite being unprofitable, Ola has captured a 46% market share in the e-scooter segment within three years of its inception, even after adjusting its sales targets following cuts in government incentives.
Aggarwal, who already operates an e-scooter factory in Tamil Nadu, had plans in 2022 to construct a new facility capable of producing 1 million electric cars annually. He envisioned breaking away from the typical design of small to mid-sized vehicles prevalent in India. The company had engaged external consultants and recruited over 100 employees for the car project, but about 30% of the team has since left, with others reassigned to different roles or projects.
Initial discussions with auto component suppliers had begun, and a prototype resembling a BMW luxury sedan was created in the UK. However, if and when the car project resumes, the focus will shift to developing an affordable, mass-market electric car, diverging from the initially planned premium sports car model.
Amidst a challenging year for automakers, with increased competition from more affordable Chinese imports and a weaker sales outlook in major markets, the industry continues to navigate significant transitions toward electric vehicles.
