2 hrs ago
Ola Electric Delays Three-Wheeler Launch After ₹229 Crore Spend
Ola Electric is building electric three-wheelers for passengers and cargo.
The company says it has already spent at least ₹229 crore on the project.
The vehicles were supposed to arrive earlier, but the programme has been delayed.
Ola now expects the work to be completed between March 2027 and March 2028.
The company wants to sell more than electric scooters.
Its share of India’s electric scooter market has fallen sharply.
Ola also sold about half as many scooters in fiscal 2026 as in the previous year.
Experts say three-wheelers could create new opportunities, but Ola will face strong competition and must overcome damage to its brand.
Ola Electric reported spending at least ₹229 crore developing electric three-wheelers.
The programme, initially scheduled to begin launching by mid-2025, is now expected to finish between March 2027 and March 2028.
Ola aims to diversify beyond scooters, where its market share has fallen from about 50% to around 8%.
The company sold just under 200,000 electric scooters in fiscal 2026, roughly half the previous year’s volume.
Ola will compete with Bajaj Auto, TVS Motor and Mahindra & Mahindra in a market where electric vehicles represent more than 65% of sales.
- Who
- Ola Electric Mobility Ltd, led by chairman and managing director Bhavish Aggarwal, is developing the vehicles.
- What
- Ola has spent at least ₹229 crore on an electric three-wheeler programme whose launch has been delayed.
- Where
- The programme is being developed by Ola Electric, a Bengaluru-based company, for the Indian market and potentially export markets in Southeast Asia.
- When
- The spending was disclosed in the fiscal 2026 annual report released Tuesday; completion is now expected between March 2027 and March 2028.
- Why
- Ola is seeking to diversify its revenue beyond electric scooters and potentially generate more cash for its two-wheeler business.
Expansion opportunity
Competitive and execution risks
Business diversification
Expansion opportunity
The three-wheeler segment could diversify Ola’s revenue, support its two-wheeler business and create domestic and Southeast Asian export opportunities.
Competitive and execution risks
The delayed programme adds to several projects still under development, including battery cells, motorcycles and hyperchargers.
Market entry
Expansion opportunity
Ola plans to reuse much of the technology from its S1 scooter platform, while electric vehicles already make up more than 65% of three-wheeler sales.
Competitive and execution risks
Analyst Subhabrata Sengupta said the market is highly competitive and Ola could struggle to enter because of damage to its brand.
Company position
Expansion opportunity
A three-wheeler business could help Ola reduce its reliance on scooters and potentially generate additional cash.
Competitive and execution risks
Ola’s scooter market share has fallen to around 8%, sales have halved from the previous year and the company has sharply reduced its store network.
Key facts
- Development spending
- At least ₹229 crore, covering design, engineering, testing, materials, services and prototype tooling.
- Current timeline
- The programme is expected to be completed between March 2027 and March 2028.
- Earlier timeline
- Ola had targeted a passenger model between June 2025 and January 2026, followed by a cargo model in December 2026.
- Electric scooter market share
- Ola’s share in India fell from about 50% at the end of March 2024 to around 8% in recent months.
- Fiscal 2026 scooter sales
- Just under 200,000 electric scooters, about half the previous year’s volume.
- Sales network
- Ola reduced its stores from about 4,000 to roughly 700.
- Market composition
- Electric three-wheelers account for more than 65% of the segment’s sales, according to Federation of Automobile Dealers Association data.
Quotes
Subhabrata Sengupta
Partner at Avalon Consulting
“The company may also look to enter the segment to generate more cash for its two- wheeler business also, The market is very competitive and due to the hit to the Ola brand, they will find it difficult to enter.”
livemint.com
Sources
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