Ola Electric suspends India automobile project

India (Commonwealth) _ Ola Electric, India’s IPO-bound electric car startup, has halted plans to sell electric vehicles in order to focus on its e-scooter business, according to reliable Indian Automobile sources.
Ola founder Bhavish Aggarwal announced intentions in 2022 to produce an electric sports car with an all-glass roof in two years, capable of reaching 100 km/h in four seconds.

According to two sources, the project has been halted before to its scheduled August IPO, which is expected to earn around $660 million, notwithstanding Aggarwal’s previous statement to Forbes in September 2023.

Ola’s primary focus is on the two-wheeler sector, including motorcycles, and broad electrification is still a long way off – (charging) infrastructure is required, according to a source.  The postponement of Ola’s electric car proposal, which could have competed with Tata Motors in the fast-growing industry, highlights the impact of limited charging infrastructure in India.

In recent years, e-scooters have gained popularity in the country, and infrastructure has been rapidly developed. By June of this year, over 483,000 e-scooters had been sold, while only roughly 45,000 electric vehicles had been sold in the world’s third-largest auto market.

According to one of the insiders, Ola’s automobile project has been put on hold for at least two years while the company focuses on two-wheeler sales and battery manufacture. Boeing agrees to a guilty plea for the 737 MAX as the US outlines the reasons. Boeing agrees to a guilty plea for the 737 MAX as the US outlines the reasons.

The company’s stock market debut next month will be one of India’s largest IPOs of the year. Ola has achieved a 46% market share in e-scooters in three years, despite lowering sales targets last year due to lowered industry incentives under Prime Minister Narendra Modi’s administration.

Aggarwal already owns an e-scooter manufacturing in Tamil Nadu.  In 2022, he stated that he would establish a second facility on the same location capable of producing 1 million electric cars per year. He stated that the automobiles will be meant to buck the national pattern of drab, tiny, or midsized vehicles.

According to the second source, Ola used external consultants and employed more than 100 people for the project, and 30% of the staff has now left, with others taking on new positions or initiatives.

According to sources, Ola made huge investments in the automobile project, engaging over 100 people and enlisting external experts. Since the project’s suspension, around 30% of this crew has allegedly departed the organization, while others have been moved to different jobs or projects.


The business has initiated preliminary discussions with a few auto component suppliers and even produced one prototype of the automobile model, which was fashioned in the style of a BMW luxury sedan, at its studio in the United Kingdom, according to the individual.

The first source, however, stated that if Ola revives the automobile project, it will focus on building a cheap, mass-market electric vehicle, as opposed to Aggarwal’s previous aspirations to introduce a premium sports car.

The cancellation of Ola’s electric vehicle ambitions, which might have positioned the firm as a competitor to established players such as Tata Motors and Mauti. While e-scooters have acquired substantial popularity in recent years, with infrastructure emerging quickly to support them, the move to electric automobiles has been sluggish.

According to one insider, Ola’s automobile project has been postponed for at least two years while the business focuses on two-wheeler sales and battery manufacturing. This strategic repositioning comes at a critical moment for Ola Electric, which is preparing for one of India’s largest IPOs this year.

Despite being a loss-making company, Ola has achieved a 46% market share in the e-scooter industry in just three years of operation.

The company’s current infrastructure comprises an e-scooter manufacturing in Tamil Nadu. In 2022, Aggarwal revealed plans to develop a second facility on the same property with a capacity to produce 1 million electric vehicles per year. These automobiles were designed to deviate from the pattern of tiny or Midsize automobiles are widespread in India.

According to sources, Ola made huge investments in the automobile project, engaging over 100 people and enlisting external experts. Since the project’s suspension, around 30% of this crew has allegedly departed the organization, while others have been moved to different jobs or projects.