IPO-bound Ola Electric’s recent move to slash prices of its two-wheeler scooters by around Rs 25,000 per unit last week has resulted in a jump in sales of around 10,000 scooters in the last three days, company sources told Moneycontrol.
“Ola Electric’s price rejig has led to the company to sell 3X units of its S1 scooters portfolio - at around 10,000 (average of over 3000 per day) in the last 72 hours,” sources claimed.
To be sure, the government VAHAN data on EV two-wheeler sales for February will be available only in the first week of March.
On February 16, the Bangalore-based startup announced in a statement that it has cut down the prices of battery-powered scooters by up to Rs 25,000 for February.
The firm’s scooters 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 February.
The price cut also comes as Ola Electric recently became eligible for the government's production-linked incentive (PLI) scheme. The firm’s S1 Air and S1 Pro both have been granted the PLI certification so far.
“Ola Electric is the only 2W wheeler maker to receive two government subsidies under the PLI scheme and Ola gets Rs 15,000 to Rs 20,000 benefit on each scooter that is granted under PLI,” Sources quoted above said.
The Bangalore-based startup while announcing the price cut claimed 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.
Also Read: IPO-bound Ola Electric slashes prices of e-scooters by up to Rs 25,000
Ola Electric continues to hold a higher market share among EV manufacturers in India. In January, the firm sold over 32,293 scooters with 40% market share, compared to TVS Motor’s 15,279 and Bajaj’s 10,855.
Ola Electric has also been moving towards adding for affordable models in its portfolio to accelerate adoption. The company recently launched its affordable EV range with the S1X scooters, with prices starting at Rs 79,999 per unit.
The firm has a manufacturing capacity of 1 million electric vehicles per annum in Krishnagiri, Tamilnadu, is planning to double its capacity.
"In the next six to nine months, our total manufacturing capacity will go up to 2 million from the present 1 million per annum. The capacity we have right now can be expanded up to 10 million per annum and that is our ultimate goal," Bhavish Aggarwal, the cofounder and managing director of Ola Electric said in an earlier interaction.
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