To expand its presence in the commercial vehicle sector, Ola Electric is set to unveil its much-anticipated electric autorickshaw which is likely to be christened “Raahi”, later month, sources familiar with the matter disclosed to The Economic Times.
“Raahi” has been undergoing its development for several years as a part of Ola Electric’s broader vision to diversify its offerings. With this move, the company aims to directly challenge established players such as Mahindra Treo, Piaggio Ape e-city and Bajaj RE in the electric three-wheeler space signalling its ambition to capture a significant market share.
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Moreover, the insiders of the company have hinted at the company’s preparations to make substantial announcements in the coming months including updates on its gigafcatory ahead of its highly anticipated IPO.
Market Trends & Future Plans
The electric autorickshaw market is witnessing intensified competition, with leading players offering models priced between INR 2 lakh to over INR 3.5 lakh, depending on specifications and features.
In terms of market performance, Ola Electric has emerged as a dominant player in the electric scooter segment, commanding a remarkable 41% share as of February, having sold 33,722 units. Notably, competitors such as TVS Motor, Bajaj Auto, and Ather Energy have captured shares of 17.7%, 14.2%, and 11%, respectively.
Government data from the transport website Vahan indicates a significant surge in electric three-wheeler sales in 2023, surpassing 580,000 units, marking a remarkable 66% increase from the previous year. Electric three-wheelers accounted for over 50% of total three-wheeler sales in 2023, underlining the growing preference for eco-friendly mobility solutions.
Expansion Plans and IPO
Apart from the foray into the electric auto rickshaw segment, Ola Electric is intensifying its efforts in the electric two-wheeler market, where it currently enjoys a leading position. In a bid to enhance customer experience and infrastructure, the company recently announced an extension of the battery warranty for all scooter variants to eight years. Furthermore, plans are underway to establish 10,000 fast-charging points, distribute portable fast chargers to customers, and expand the service centre network to 600 outlets by April.
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Ola Electric’s ambitious expansion plans are reinforced by its filing of a draft red herring prospectus (DRHP) in December 2023, to raise to INR 5,500 crore through a fresh issue, alongside an offer for sale of 95.2 million shares by existing investors.
