Ola Electric Q3 Results: India’s largest electric two -wheeler manufacturer Ola Electric on Friday announced its third quarter result. The company recorded an increase in the third quarterly deficit, due to the increasing competition and huge discounts given by the company to avoid it.
Supported by SoftBank, the company recorded a loss of ₹ 564 crore ($ 64.51 million) in the October-December quarter, compared to ₹ 376 crore in the same period a year ago. The company’s shares declined by 2.6% after the result was announced.
Ola Electric is India’s highest electric two -wheeler selling company based on the number, but its sales have declined due to the launch of new models by traditional companies like Bajaj Auto and TVS Motor. These companies are bringing models whose prices are almost equal to Ola scooters.
Ola Electric launched its first scooter at the end of 2021, but has not yet come into profit. The company hopes that production of its own battery cell can help in making profit.
The December quarter comes during the festive season in India, and Ola Electric gave huge discounts on its entry-level scooters. Due to this, the ex-showroom price of its scooters was halved and reached about ₹ 50,000. According to analysts, this affected the company’s revenue and declined 19.4% to ₹ 1,045 crore.
The company said, “The performance was strong due to sales during the festival in October, but the total quarter saw weakness due to competition and other challenges.”
Ola Electric’s entry-level models increased to one-third of the total sales, while it was only 4% a year ago. The total expenditure of the company was reduced, including the cost of raw materials – which includes battery cells – reduced to about 29%.
Explain that Ola Electric Company was founded by Bhavish Aggarwal, which is its founder and CEO (CEO). Ola Electric launched its first electric scooter in 2021 and has since strengthened its appearance in the market with different models. Recently, the company has launched a new series of Gen 3 scooters, including models like S1 X, S1 X+, S1 Pro, and S1 Pro+. The prices of these models start from ₹ 79,999 to ₹ 1,69,999, which are available with various battery options and range. According to the information present on the company’s official website, Ola Electric has also introduced a new motorcycle called Roadster X, which has an initial price of ₹ 74,999.
Ola Electric has also recently launched its initial public offer (IPO), making it India’s first listed electric two-wheeler company.