Ola Electric has finalised its second phase of expansion, under which it will increase its plant capacity fourfold — from 1 million two-wheelers per annum to 4 million.
This will also include motorcycles, said a top executive of the company.
It will also build a plant with a 5 Gwh of advanced chemistry cell battery storage capacity in the same super factory located on the outskirts of Bengaluru.
That apart, it is planning to set up the initial phase of its passenger car manufacturing capacity, from where cars are expected to roll out in 2024.
While the details of the investment are being worked out, it will likely come from a combination of internal accruals, project financing, debt and the raising of some equity.
A senior executive said that Ola’s long-term objective is that in the next six-seven years, it will expand the plant in four more phases in the same location, so that it develops an overall capacity to make 10 million two-wheelers and 1 million passenger cars and, eventually, has 100 Gwh of advanced chemistry-based battery storage capacity.
It will become the biggest vehicle-making plant in the world, the executive added.
According to Ola, its battery manufacturing capacity will be far more than what it is expected to achieve under the production-linked incentive (PLI) scheme for making advanced cell batteries of 20 Gwh.
The company is one of the three eligible players under the scheme.
The executive said the battery capacity will take care of Ola’s own captive requirements, but in case it has a surplus, it will be ready to offer it to others.
Ola expects its sales in November to exceed that of last month’s festival season.
The executive revealed that 70 per cent of the EVs are being sold through financing.
This is the best in the industry, where, on an average, 25 per cent of electric scooters are bought through financing, he said, adding that while the second model of electric two-wheeler, priced at Rs 1 lakh, has done very well, 60 per cent of the volumes still comes from the flagship launch model, which has an on-road price of Rs 1.5 lakh.
Ola Electric has charted a clear plan to build around 10-12 models of two- wheelers and at least four to five models of four-wheelers in the next few years.
They would include motorcycles at different price points, too.
And while the first car would be at the top end (Rs 40 lakh), the eventual plan is to have products even at a price tag of around Rs 5 lakh.
“We will have electric vehicles from Rs 1 lakh to Rs 40 lakh, covering every range and form,” the executive said.
Responding to whether the ratio between motorcycle and scooters with internal combustion engines (ICE) will get replicated in electric two-wheelers as well, he said that while scooters may gain some more share of the total electric two-wheeler market, motorbikes will still be very important.
Currently, motorbikes account for 60 per cent of the ICE two-wheeler market in India, which, at its peak, was around 20 million per annum.
The road ahead
- Plans to eventually have the capacity to produce 10 mn two-wheelers, 1 mn cars
- Attaining 100 Gwh of advanced chemistry cell-based battery manufacturing capacity
- Looks to come out with 10 models of two-wheelers and 4-5 models of four-wheelers
- The first car will be priced around Rs 40 lakh; eventual plan to have cars priced as low as Rs 5 lakh
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