Ola Electric to invest $208.5 mn in EV, cell tech units
Ola Electric will invest $208.5 million in its core vehicle and cell units as the EV bike and scooter maker aims to step up cost cuts and localize manufacturing to achieve profitability amid rising competition.
The SoftBank-backed firm has been grappling with higher operating costs and is seeking to bring them down through automation, job cuts and increasing in-house production of EV cells. The firm also plans to launch a new cost-efficient line of EV two-wheeler models.
The investment is expected to be completed by May 14, 2027, Ola Electric said in a statement.
Last year, the company started manufacturing its own battery cells instead of importing them, a move that it previously said is key to achieving profitability.
In February, it projected lower operating costs by as much as 50% in the coming quarters, after posting a narrower third-quarter loss as it sets its sights on turning profitable. Ola is yet to report its March-quarter results.
Its EV unit posted a revenue of 47.17 billion rupees for the year ended March 31, 2026, while its cell unit posted a revenue of 730 million rupees.
The company, which once commanded half of India's e-scooter market, has lost ground to legacy players such as Bajaj Auto and TVS Motor, which widened distribution and rolled out competing models, as well as to rival Ather Energy.
