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Ola Electric has finalized its plans and will begin launching electric three-wheelers aimed at selling directly to consumers. The vehicle is likely to be named Rahi and the company plans to announce it this month.
The vehicle competes with Mahindra Treo, Piaggio Ape e-City and Bajaj RE in the electric three-wheeler segment. The company plans to enter the commercial vehicle sector and has been working on this project for several years.
Ola Electric plans to make a number of announcements in the coming months ahead of the listing, including the Gigafactory, according to media reports. E-autorickshaws are also part of the same plan and the internal target is to implement them in the next two weeks.
Prices of electric autorickshaws from Mahindra, Piaggio and Bajaj range from Rs 200,000 to over Rs 35,000, depending on the model and add-ons. According to government transportation website Vahan, more than 580,000 electric three-wheelers were sold last year, a 66% increase over 2022. Electric tricycles accounted for more than 50% of total tricycle sales in 2023.
Rahi, which means traveler in Hindi, is part of a series of ventures that Ola Electric is planning for its IPO. The company had filed a draft red herring prospectus (DRHP) in December last year and aims to raise up to Rs 5,500 crore through a fresh issue apart from the proposed sale of 95.2 million shares by existing investors. .
Ahead of its IPO, Ola Electric is looking to further strengthen its position in the electric two-wheeler sector, where it is the market leader.
In February, the company extended the battery warranty on all scooter models to eight years. The company said it will install 10,000 fast charging points by the end of next quarter, sell portable fast chargers to customers and expand its service center network from 400 to 600 by April. The company also listed the four-wheeler as an “intangible asset under development” in its draft IPO documents.
Ola Electric is working to open a gigafactory that will be used to manufacture its battery cells by the end of this quarter, founder and chief executive Babish Agarwal said in February. It plans to allocate Rs 1,226 crore from the expected IPO proceeds to Gigafactory.
The Bengaluru-based company held a 41% market share in the electric scooter segment and sold 33,722 units as of February, according to data on Vahan’s website. Competitors TVS Motor, Bajaj Auto and Ather Energy accounted for 17.7%, 14.2% and 11% of the market respectively.
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