Ola Electric, led by CEO Bhavish Aggarwal, is preparing to enter the electric three-wheeler (3W) segment, positioning itself against existing players such as Euler Motors, Piaggio, and Mahindra Electric. The company is developing an in-house electric three-wheeler and aims “to bring it to the market soon,” according to Aggarwal’s statement to CNBC-TV18, though a specific launch timeline has not been provided.
Aggarwal revealed that electric rickshaws have been part of the company’s plans since its inception, and Ola Electric has also demonstrated technology focused on this product. He noted that their upcoming entry into the EV 3W space has been significantly influenced by feedback from driver partners on the Ola Cabs platform. These interactions highlighted key challenges and a growing inclination toward electric vehicles.
According to a separate report by The Economic Times, Ola Electric is expected to unveil its 3W EV, presumably named ‘Raahi’, within the next 3-4 months. The vehicle is reported to have a minimalist design, featuring square headlights, a large windshield, A-pillar mounted outside rearview mirrors (OVRMs), and doors designed for cabin safety. Along with the passenger version, Ola Electric is also planning a goods carrier variant to cater to a broader clientele.
Once launched, Ola Electric’s EV 3W will directly compete with established players like Mahindra, Bajaj, and Piaggio, whose vehicles are priced between INR 2 lakh to INR 3.5 lakh. Industry insiders expect Ola Electric to continue its pricing strategy, similar to the one used for its Roadster series of electric bikes, potentially pricing the 3W EV below the market’s upper price range to attract more customers.
Electric three-wheelers have gained significant traction in the Indian market, with Vahan data showing a 66% year-on-year growth, reaching 5.8 lakh units in 2023. Moreover, electric vehicles accounted for 50% of overall three-wheeler sales that year.
This move comes as Ola Electric aims to chart a path to profitability, particularly as its net loss widened by 30% to INR 347 crore in Q1 FY25, compared to INR 267 crore in the corresponding period of the previous year. Despite this, Aggarwal noted that Ola Electric’s EV business is “close to breaking even on an EBITDA level.”
Ola Electric’s expansion into the 3W market aligns with the Indian government’s push for increased EV penetration. Union Minister for Heavy Industries H.D. Kumaraswamy recently announced that the Centre would roll out the third edition of the demand incentive scheme for EVs, FAME-III, within the next two months.
Shares of Ola Electric reflected positive market sentiment, closing 4% higher at INR 115.25 on the BSE following Aggarwal’s remarks.