SoftBank-Backed Indian Ola Electric Hits $7 Billion Market Cap After Debut — What’s Ahead?

Key Takeaways

• Since its IPO on Aug. 9, Ola Electric’s market capitalization has increased nearly 90% to $7 billion,
• The company now claims 65% of the market for electric motorcycles and 49% for electric scooters in India.
• In July, one in five scooters sold in India was electric.

The Indian Electric Vehicle (EV) startup Ola Electric has exploded onto the global stock market, reaching a market capitalization of $7 billion less than two weeks after its Initial Public Offering (IPO).

With the firm’s share price up nearly 90% post-listing, Ola’s success signals the strength of India’s nascent EV market as electric scooters transform the country’s mobility sector.

India Embraces Electrification

The Indian government has set a target  of 30% EV penetration by 2030 in an effort to reduce the country’s carbon emissions and improve air quality. It has also made establishing a “self-reliant domestic EV ecosystem” a top priority.

However, unlike the car-dominated US market, it is estimated that two-wheelers make up nearly three-quarters of vehicles in the country. In fact, according  to the World Population Review, India is home to more motorcycles than any other country in the world.

With this in mind, Ola’s range of electric motorcycles and scooters has proven popular in India’s urban centers.

Electric Scooters Help Ola Grow Market Share

In the quarter ending June 30, Ola delivered  125,198 EVs, a 77.4% increase year-over-year. The Softbank-backed company now claims 65% of the market for electric motorcycles.

Since launching its mass-market scooter range, Ola has made significant gains in the sub-1,000W segment, too, where it has poached market share from rival Odysse.

As CEO Bhavish Aggarwal told investors  during the company’s recent earnings call, India’s electric scooter market is booming. In July, 21% of all scooters sold in the country were electric. He added that electric penetration rates have risen to upwards of 30% in some states.

Investing in Battery Manufacturing

While Ola’s EVs currently rely on cells produced in China and South Korea, the company plans to start manufacturing its own batteries at a new plant being built in Pochampalli.

Construction of the new facility commenced in June 2023, and the Pochampalli Gigafactory is expected to be operational by 2025. In preparation for the new manufacturing plant, Ola’s Battery Innovation Center  has spearheaded research and development in cell and battery technology.

About the Author

James Morales

Although his background is in crypto and FinTech news, these days, James likes to roam across CCN’s editorial breadth, focusing mostly on digital technology. Having always been fascinated by the latest innovations, he uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.

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