Ola Halts Electric Car Project: Planned for 2024 Launch, Shifts Focus to E-Scooters and Bikes

Indian startup Ola Electric has currently suspended its plans to launch an electric car, according to information provided by news agency Reuters. As per Reuters, the company aims to focus on its two-wheeler segment, which includes electric scooters and bikes in the S1 category.

Bhavish Aggarwal, the founder and CEO of the company, shared the plans related to the car in an interview with Forbes. However, two people associated with the project stated that the company is preparing to bring an IPO in August. Previously, the electric car project was discontinued.

Electric Car Project Postponed for At Least Two Years

Ola is planning to raise $660 million through its IPO, which will be one of the largest IPOs in India this year. 

According to a source, Ola’s car project has been postponed for at least two years as the company focuses on sales of its two-wheelers and battery production. However, no official statement has been issued by Ola regarding this matter.

Electric Car Previewed in 2022

On August 15, 2022, the company showcased a preview of its electric car, which was slated for launch by 2024. The company stated that the car would have a range of 500 kilometers and could accelerate from 0 to 100 kilometers per hour in just 4 seconds.

Aggarwal mentioned that Ola’s first car would be equipped with cutting-edge technology. It would be the country’s first sports car in the electric segment. The car would not only be keyless but also have minimal handles. This means the car can be started without a key, and there would be no handles on the doors.

Ola Suspends Project for Five Reasons

• Lack of basic infrastructure for charging electric cars in the country.
• As of June this year, 45,000 cars were sold nationwide, while Ola sold 483,000 e-scooters.
• The company captured a 46% share in the e-scooter market over three years but is currently operating at a loss.
• Due to the discontinuation of the FAME subsidy by the government, the company had to reduce its sales targets.
• Increasing competition from cheaper Chinese brands in the e-car market and declining sales in key markets.

30% of Employees Involved in Car Project Resign

According to Reuters, Ola had assembled a team of over 100 employees and external consultants for the electric car project. Of this team, 30% have resigned, and some have been reassigned to new roles or projects.

A source stated that the company is negotiating with suppliers for certain auto components and has even developed a prototype model based on the design of a BMW luxury sedan at its studio in the United Kingdom.

According to Reuters, whenever Ola revives the car project, it will focus on developing an affordable, mass-market electric car, diverging from CEO Bhavish Aggarwal’s previous plan of launching a premium sports car.