Shares of this leading electric vehicle (EV) company are drawing investor interest after a substantial market share gain and plans for further expansion during the festive season. Amidst regulatory scrutiny, the company has managed to increase its market share, showcasing its resilience to growth.
Price Movement
In Tuesday’s trading session, the share price of Ola Electric Mobility Ltd reached an intra-day high of Rs.91.60 per share from its previous close of Rs.87.46 apiece, gaining around 4.7 percent. The shares retreated since then and are currently trading at Rs.89.95 per share.
What happened
Ola Electric, India’s leading EV company, recorded over 15,672 registrations in October (as of Oct 14), securing a 34 percent market share in the EV 2W segment. The market share of Ola Electric grew by 7 percent from 27 percent in September to 34 percent in October.
Additionally, Ola has started the #HyperService campaign to boost EV adoption, particularly in tier-2 and tier-3 cities, with the goal of doubling its service centers to 1,000 by December 2024.
Ola has started the #HyperService campaign to boost EV adoption, particularly in tier-2 and tier-3 cities, with the goal of doubling its service centres to 1,000 by December 2024.
The company will onboard 10,000 partners by 2025 and train 1 lakh mechanics to support EV maintenance nationwide.
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BOSS Sale
Ola Electric recently launched its BOSS (Biggest Ola Season Sale) campaign for the festive season, offering customers the chance to purchase the Ola S1 X 2kWh scooter for as low as Rs.49,999, along with festive benefits worth up to Rs.40,000.
Key features of the campaign include discounts of up to Rs.25,000 on the S1 series and a complimentary 8-year/80,000 km battery warranty, valued at Rs.7,000. This festive offer has contributed to a significant increase in Ola’s market share.
Regulatory Scrutiny
Ola Electric is reportedly facing regulatory scrutiny from the Automotive Research Association of India (ARAI) over its recent pricing strategies, according to Business Standard.
The ARAI has expressed concerns about Ola Electric’s failure to notify the agency of the price reduction for its S1 X 2 kWh model prior to launching its widely publicised “BOSS” sale.
Financials
In its latest financial update, the company reported net sales of Rs.1,644 crore for Q1 FY25, marking a 32.2 percent increase from Rs.1,243 crore in Q1 FY24. Despite this growth in sales, the company continues to incur losses, posting a net loss of Rs.347 crore in Q1 FY25 compared to a net loss of Rs.267 crore in Q1 FY24.
Company Profile
Ola Electric is a prominent Indian electric vehicle manufacturer, known for its flagship scooter, the Ola S1 Pro, which offers a range of up to 195 km and a top speed of 120 km/h.
The company operates a robust manufacturing facility called FutureFactory in Tamil Nadu, focusing on sustainable production and advanced technology integration in its electric vehicles.
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Written by – Siddesh S Raskar
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