Ola Electric's Strategic Roadmap to Profitability

Ola Electric is focusing on higher volume, vertical integration, and in-house cell production to achieve profitability. Although plans for an electric car are shelved, the company aims to dominate India’s two-wheeler and three-wheeler electric vehicle market. Despite growing net losses, the company emphasizes that margin improvements and stable costs will guide them to profitability.

Ola Electric unveiled its strategy to achieve profitability through increased volume, vertical integration, and in-house cell production, as confirmed by founder and CMD Bhavish Aggarwal. The company has paused its electric car plans to concentrate on two-wheelers and three-wheelers, critical to the Indian market.

Aggarwal pointed out that while Ola Electric's net loss widened to Rs 347 crore in Q1, the automotive segment's EBITDA was near break-even. Enhanced margins, driven by higher volumes and stable costs, form the core of their profitability roadmap.

Highlighting vertical integration, Aggarwal noted that manufacturing components in-house, particularly the 'Bharat 4680' cell, would significantly improve margins by early next year. He reiterated that Ola's mission is to make India a leader in electric vehicles, urging other manufacturers to adopt EVs rapidly to benefit the industry and nation.

(With inputs from agencies.)