In a strategic move to boost adoption, Ola Electric, on February 16, announced a significant price reduction of Rs 25,000 per unit on its S1 Pro, S1 Air, and S1 X+ electric scooters. This bold initiative has proven to be a game-changer, propelling sales to an impressive 10,000 units within just three days.
Surge in Sales After Price Adjustment
The decision to slash prices has yielded remarkable results, with sources revealing that Ola Electric witnessed a threefold increase in sales, averaging over 3,000 scooters per day in the last 72 hours. This surge in demand highlights the positive response to the pricing strategy implemented by the Bangalore-based startup.
Government Subsidies and Production-Linked Incentives (PLI)
Ola Electric’s recent eligibility for the government’s production-linked incentive (PLI) scheme adds another layer of significance to the price reduction. Both the S1 Air and S1 Pro models have received PLI certification, allowing the company to benefit from Rs 15,000 to Rs 20,000 on each scooter granted under the scheme. This unique position makes Ola Electric the sole two-wheeler manufacturer to receive two government subsidies under the PLI scheme.
Market Dominance and Expansion Plans
With a commanding 40% market share among EV manufacturers in India, Ola Electric has consistently outperformed competitors. In January alone, the firm sold an impressive 32,293 scooters, surpassing TVS Motor and Bajaj by a significant margin.
Diversification for Accelerated Adoption
To further accelerate adoption, Ola Electric has strategically diversified its portfolio by introducing more affordable models. The recent launch of the S1X scooters, starting at an attractive price of Rs 79,999 per unit, aligns with the company’s commitment to making electric vehicles accessible to a broader audience.
Manufacturing Capacity and Future Plans
Ola Electric, headquartered in Bangalore with a robust manufacturing facility in Krishnagiri, Tamil Nadu, is set to double its production capacity. Currently capable of producing one million electric vehicles annually, the company aims to expand this capacity to two million within the next six to nine months. Bhavish Aggarwal, the co-founder, and managing director of Ola Electric, envisions a long-term goal of reaching a manufacturing capacity of up to 10 million electric vehicles per annum.
In conclusion, Ola Electric’s strategic price reduction, coupled with government incentives and a commitment to affordability and expansion, positions the company as a frontrunner in the rapidly evolving electric vehicle market in India.
