IPO-bound Ola Electric slashes prices of e-scooters by up to Rs 25,000

Close on the heels of Tata Motors reducing the prices of its Battery Electric Vehicles (BEVs), Ola Electric has cut down the prices of battery-powered scooters by up to Rs 25,000 for February. The Bangalore-based EV startup claimed that that it could cut down prices of its products on the back of “robust cost structures”, “vertically integrated in-house technology", manufacturing capabilities and eligibility to manufacturing incentives.

With effect from February 16, S1 Pro, S1 Air, and S1 X+ are now available at Rs 129,999, Rs 104,999 and Rs 84,999 respectively until the last day of this month.

It was reported recently that the IPO-bound Ola Electric has received certification for its second product under the Production-Linked Incentive (PLI) scheme for the automobile and auto component industry. As a result, Ola S1 Pro and Ola S1 Air are now eligible for subsidies under the government’s Auto PLI scheme for five years from the date of certification.

“At Ola, we are committed to #EndICEAge by breaking all barriers to EV adoption and making EVs more affordable and accessible. Aligned with our mission to push EV adoption across the country, we are introducing unprecedented prices across our S1 portfolio. Priced equivalently to leading ICE scooters, we are confident that customers will now have no reason to buy an ICE scooter.” Ola Electric said in a statement.

Taking to X (formerly Twitter), Ola Electric's chairman and managing director Bhavish Aggarwal said that this “special discount” is in effect starting today, February 16, and will exist till the end of this month.

"You asked, we delivered! We're reducing our prices by up to Rs 25,000, starting today, for the month of Feb for all of you!! Breaking all barriers to #EndICEage! Valentine's Day gift for all our customers," he wrote on Twitter. Earlier in January, Ola Electric rolled out a similar scheme wherein it offered a 50 percent discount on extended warranty and up to Rs 2,000 exchange bonus on the S1 Air and S1 Pro models.

Other EV makers reckon that Ola Electric's decision to pass on the benefits to consumers demonstrates a "strategic approach" to making electric mobility more accessible to the Indian market.

"Similar to the broader industry trend, as the market for electric vehicles matures, we are witnessing a positive downward trend in prices. As volumes grow and the ecosystem strengthens, I believe we will continue to see a positive impact on the overall adoption of electric vehicles in the country," . Uday Narang, Founder and Chairman, Omega Seiki Mobility told Moneycontrol.