Why Ola Electric Share Price is Rising

The EV sector in India is experiencing significant growth.

With increasing environmental awareness, the demand for electric vehicles is rising. Government incentives and policies are boosting this transition.

Improved charging infrastructure and lower running costs also make EVs attractive. Many players are contributing to this expanding market.

One notable name in this sector is Ola Electric. The company is a subsidiary of Ola, the ride-hailing firm. Ola Electric manufactures electric scooters.

Ola Electric's share price has caught the attention of investors recently. It has surged 39.5% in the last five days. This sharp rally follows a major announcement by the company.

Let's explore this announcement to understand what's driving this upward trend in its share price.

New Launches

Ola Electric shares jumped after the company announced two new affordable electric scooters starting at Rs 39,000.

These models, the S1 Z and the Gig, are the most economical in Ola's portfolio. The company also introduced the PowerPod, a portable battery that doubles as a home inverter, priced at Rs 10,000.

The Gig range, aimed at gig workers, comes in two versions: Gig and Gig+, priced at Rs 40,000 and Rs 50,000, respectively.

It offers a 112 km range with a top speed of 25 km/h and features a removable 1.5 kWh battery. The Gig+ model, designed for longer trips, offers up to 157 km range with a dual-battery option and a 45 km/h top speed.

The S1 Z series targets urban commuters and small businesses. The S1 Z provides a 75 km range and 70 km/h top speed with dual removable 1.5 kWh batteries. The S1 Z+ is versatile, catering to both personal and light commercial use. Deliveries for these models will begin in April 2025.

This launch comes as Ola addresses ongoing service complaints. The share price rally reflects investor enthusiasm for Ola's efforts to expand its market reach with affordable EVs and innovative technology.

What Next?

Ola Electric has laid out a comprehensive roadmap to solidify its leadership in India's EV market and expand globally. The company plans to introduce 20 new products over the next two years, with at least one launch every quarter.

These include motorcycles and three-wheelers designed to capture both mass and premium segments, broadening Ola's presence in various EV categories. The Roadster motorcycle series, set for delivery starting March 2025, aims to address a wide spectrum of consumer preferences.

The company's third generation (Gen 3) platform will be operational from January 2025, enabling approximately 20% savings in bill-of-materials costs over the next year.

These cost efficiencies, combined with innovations such as structural batteries and magnet-less motors, aim to enhance product performance and reliability while reducing warranty expenses.

Ola is also intensifying its focus on distribution and service networks. It plans to increase its company-owned stores from 782 to 2,000 by March 2025.

Simultaneously, the network partner program, launched recently, aims to expand the presence of sales and service points to over 10,000 by the end of 2025.

The company has already commenced trial production of in-house lithium-ion cells, with commercial use planned for Q1 FY26.

This move is expected to lower costs, improve margins, and reduce reliance on external suppliers. Gross margins are projected to rise steadily, exceeding 30% in the long term even as subsidies diminish.

Ola's strong R&D capabilities and ongoing investments in technology and infrastructure position it to lead the accelerated adoption of electric vehicles in India.

How Ola Electric Share Price has Performed Recently

In the past five days, Ola Electric share price rallied 37.3%. In the past month its share price has surged 18.8%.

The stock touched its 52-week high of Rs 157.5 on 20 August 2024 and a 52-week low of Rs 66 on 22 November 2024.

About Ola Electric Mobility

Ola Electric Mobility is a leading electric vehicle (EV) manufacturer in India, specialising in the vertical integration of technology and manufacturing for EVs and their components, including battery cells.

Its operations are centered around the Ola Future factory, where production of EVs and critical components like battery packs, motors, and vehicle frames are undertaken. Ola's R&D efforts span India, the UK, and the US, focusing on innovation in EV products and core components.

Ola is also developing an extensive EV hub in Tamil Nadu, which includes the Ola Future factory and the upcoming Ola Gigafactory. This hub is supported by Ola's Bengaluru-based Battery Innovation Centre (BIC), dedicated to advancing cell and battery technology.

Ola maintains a direct-to-customer distribution network with more than 750 experience centers across India, as well as a robust online presence, making Ola Electric the largest company-owned network of automotive experience centers in the country.

For more details about the company, you can have a look at Ola Electric factsheet and quarterly results on our website.

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