Ola Electric has suspended its plans for electric cars. This was first reported by Reuters. The company reportedly wants to focus on its electric scooter business.
This comes at a time when the company is all decked up for its initial public offering, or IPO. In December last year, Ola Electric filed its draft papers with the Securities and Exchange Board of India, SEBI.
The company plans to raise Rs 5,500 crore through the issue of shares as well as the sale of existing shares. However, the company’s valuation might be reduced to $4.5 billion for its upcoming IPO. In its last fundraise, the company was valued at $5.5 billion.
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Ola Electric had plans to launch an electric sports car by 2024 that would have an all-glass roof. The plan was laid down by Ola founder Bhavish Aggarwal in 2022, where the aim was that the sports car would reach 100 km/hour within four seconds, adds the report. However, in September last year, the plan was reportedly withdrawn by Aggarwal.
Speaking to Reuters, a source said that Ola’s “focus is all on the two-wheeler market, including bikes, and mass electrification is still some time away—you need to have (charging) infrastructure.”
With a focus on electric two-wheelers and battery cells, the company will not work on the electric sports car project for two years at least, adds the report. Ola’s market share in the electric vehicle segment is 48 percent. It’s competitors include TVS Motor, Bajaj Auto, Ather Energy, and others.
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The excitement around the company’s IPO is high, as it will be not only the biggest IPO of this year but also the first electric vehicle company to go for an IPO. However, the company is still making losses. In the fiscal year 2023, Ola Electric’s net loss was Rs 1,472 crore. This was nearly twice as much as the previous year's loss of Rs 784.1 crore.
