Despite the steep growth curve, the EV leader saw net losses reduce to Rs 495 crore from Rs 524 crore a year ago but more than Rs 347 crore loss for Q1 FY25. EBITDA losses stood at Rs 353 crore, improved from Rs 412 crore a year ago but more than Rs 162 crore sequentially. Ola Electric finally delivered 1,497 units during H2FY23. Ola Electric’s growth in the EV market has attained a gross margin of 20.3% showing an impressive 12-percentage-point improvement YoY, reflecting effectiveness in strategic cost control, coupled with operational enhancements.
Vehicle Deliveries and Market Position Expansion
While Ola Electric has achieved an excellent 73.6% growth in vehicle delivery this quarter, covering a total of 98,619 units sold compared to 56,813 units delivered in Q2 FY24, the sales of the company have been greatly facilitated through the mass-market S1 X portfolio, priced below Rs 1 lakh, and have increased by 15% from sales last quarter. The S1 X, in turn, has enabled Ola Electric to keep affordability within the EV market while bringing a broad consumer base while still banking on revenue from their premium scooter line.
Network and Portfolio Growth As of September 2024, the company had 782 stores in its hands, with an average of 130 sales per quarter. It aims to double its store network to around 2,000 locations by March 2025 with enhanced retail reach and supporting colocated service infrastructure. Ola has the largest range of electric scooter models available in India ranging from Rs 75,000 to Rs 150,000. Ola is planning to launch 20 new products over the next two years, with one product in every quarter, to dominate the taxi market further.
Future Plans and Product Expansions
Ola is eyeing three-wheelers now to enhance its portfolio. It is sure to support the three-wheeler segment as well as provide initial access to the motorcycle segment. Ola announced a set of new motorcycles coming by March 2025. This motorcycle series would include three models and eight variants at Rs 74,999 to Rs 2,49,999 and this would be both a mass market and premium segment under one roof.
Key milestones: Vertical integration and Cell Production
The other major milestone of Ola Electric’s growth in the EV market has been able to achieved with its efforts to manufacture battery cells. This has been vertical integration. Its Gigafactory had supplied more than 20,000 battery cells by Q2 FY25, constituting a significant milestone toward the use of such cells produced in-house in Ola’s models of EVs. The usage of these cells is going to start in Q1 FY26 and further add to Ola’s competitive advantage since it will reduce dependency on third-party suppliers even further.
With the unveiling of the S1 Gen 3 series in January 2025, Ola Electric will look to that as another 20 percentage point gain over the following year, and that then puts the company in a very strong position regarding the Indian EV market.
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