Electric two-wheeler maker, Ola Electric has announced it will be changing its name as part of a corporate restructuring ahead of the IPO filing. The name of the manufacturer has been changed from Ola Electric Mobility Private Limited to ‘Ola Electric Limited.’ The conversion has been made to reflect the company’s status from a private company into a public company, a mandatory step for any firm if it wants to list itself on the stock exchange.
Predominantly known as an app-based cab aggregator, Ola Group ventured into the electric mobility space with Ola Electric in 2021. The company introduced its maiden offering, the S1 electric scooter in the same year. Ola Electric holds a 35 per cent market share in the electric two-wheeler segment with the models built in India at its FutureFactory in Krishnagiri, Tamil Nadu. The company recently expanded its range with the launch of the second-generation S1 Pro, the new S1 Air and the entry-level S1X electric scooters.
Ola Electric’s expansion plan does not stop here. The company has already announced plans to venture into the electric four-wheeler segment, while it also showcased electric motorcycle concepts earlier this year. The e-motorcycles are slated to arrive by the end of 2024 or early 2025, while the Ola car is an estimated two years away from production.
Additionally, Ola Electric will be venturing into the production of battery cells in 2024. The company recently raised Rs 3,200 crore of funding in the latest equity and debt rounds raised from Temasek-led marquee investors and project debt from the State Bank of India, respectively. The company will utilise the fresh investment towards building the country’s first lithium-ion cell manufacturing facility. The plant will be an extension of the existing electric two-wheeler facility in Tamil Nadu.
Ola has also been selected as the only Indian EV company under the central government’s PLI scheme receiving a maximum capacity of 20 GWh. The move is aimed to help make the country more self-reliant with respect to battery cells, which are imported at the moment. It will also help reduce costs on vehicle manufacturing, further making EVs more cost-competitive. Ola will begin lithium-ion battery cell production with an initial capacity of 5 GWh in Phase I and plans to expand the same to 100 GWh at full capacity.
With respect to retail sales and distribution, Ola Electric’s two-wheeler range is sold via the brand’s experience centres with over 1,000 outlets spread across the country. The company is also working to make EV charging more accessible with its Hypercharging network in select locations.