Ola Electric Shifts Gears to Focus on E-Scooters and Batteries

Ola Electric, backed by Softbank, is pivoting its focus to its e-scooter business and battery production, postponing its car project for at least two years. This strategic shift comes as Ola Electric prepares for its IPO in August, aiming to raise around USD 660 million. The company’s founder, Bhavish Aggarwal, had initially announced plans in 2022 to launch an electric sports car within two years, but this ambitious project is now on hold.

The decision to concentrate on the two-wheeler market underscores the company's commitment to its core strengths. Ola Electric operates a significant e-scooter factory in Tamil Nadu, which plays a pivotal role in its production capabilities. The company had previously outlined intentions to build a new plant within the same campus to manufacture one million electric cars annually.

When Ola Electric eventually revisits the car project, the focus will shift from a premium sports car to developing an affordable, mass-market electric vehicle. This change marks a significant departure from Aggarwal's initial vision, aligning more closely with broader market demands and accessibility. As Ola Electric navigates these strategic adjustments, the company remains poised to strengthen its position in the electric mobility sector.

News by  Rahul Yelligetti