The top scooter manufacturer in India, Ola Electric Mobility, saw a 20% increase on August 16 and was valued at 586.64 billion rupees ($6.99 billion).
The announcement coincides with the company’s impending launch of a new motorcycle brand and its intention to employ in-house batteries to cut expenses.
Ola Electric’s motorcycle range, according to Morgan Stanley, caters to both the “mass and premium” segments of the market. The company notes that because of its close pricing to traditional motorcycles, competition is expected to increase.
The introduction of the company’s new e-motorcycles is expected to intensify Indian rivalry. Ola Electric Mobility will face competition from businesses like Hero Motocorp, TVS Motor, and Bajaj Auto.
The majority of Ola Electric Mobility’s EV components will be produced in India, and the company intends to manufacture an “all-important” battery.
Ola Electric’s Accounts
Recall that Ola Electric listed its stock on August 9 following a $734 million initial public offering (IPO), which saw a 75% increase in share price over the 76 rupee debut price.
During a pre-IPO investment round in September 2023, its valuation was $5.4 billion. To draw investors to the stock offering and in response to a slump in global IT businesses, Ola Electric, however, lowered its valuation objective for its initial public offering to $4 billion.
HSBC has a price target of 140 rupees and a “buy” rating on the shares, based on the company’s cost-cutting capabilities and regulatory support.
Ola Electric announced on August 14th a larger first-quarter loss due to reductions in subsidies. The company entered an unexplored market by releasing a new line of e-motorcycles on August 15. By this time next year, it intends to have its own batteries installed in its cars.
India ranked as the world’s second-largest two-wheeler market last year, with 18 million motorcycles sold. India is seeing a gradual increase in the use of EVs as a result of low resale value, inadequate charging infrastructure, and range anxiety.
