Ola Electric expects to use in-house batteries in its products from early 2025

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₹5,500 crores through an initial public offering, Mint reported earlier this month. The company is seeking a valuation of about $7 billion. Ola Electric has surged past the 40% market share milestone in electric two-wheeler sales, fuelled by substantial discounts and a broad selection of competitively priced e-scooters across price ranges.

As of May, Ola remained the dominant player in India's e-two-wheeler market by volume. While the company has held on to the pole position in the country's e-two-wheeler market, the market itself has witnessed flat volumes over the past three months, data shows. Registrations for high-speed electric two-wheelers declined by 27% in May compared to the previous year's high base.

Following the government's decision to significantly reduce FAME-II subsidies on electric two-wheelers starting 1 June, 2023, the segment had witnessed a surge in pre-purchases to avail the benefit of lower prices. However, since April 2024, the central government has again reduced the subsidies for e-two-wheelers as a part of its transition policy to bridge the gap between the expiration of FAME-II (on March 31, 2024) subsidies and the forthcoming FAME-III policy implementation. Agarwal also acknowledged the shift.

“The subsidy has been tapering off over the last two to three years and the government has been very clear in its communication to the industry," he said. However, he added that as the EV industry matures, cost structures are coming to a lower price point below scale, aided by more in-house manufacturing efforts. Despite all that, Ola Electric held an impressive 48% market share in May, but electric two-wheelers comprised only 5% of the overall two-wheeler market in the country, similar to the levels