Ora Electric announced on Friday that it sold more than Rs 1,100 electric scooters for a two-day purchase period. Co-founder Bhavish Aggarwal called the sale an unprecedented event for the company and the automotive industry.
“We achieved a total of over 110 billion rupees in sales in two days. This is one of the highest daily sales of one product in the automotive industry as well as in India’s e-. History of commerce!” He Wrote in a blog post.
On August 15, the company unveiled the Ola S1 electric scooters in two variations (S1 and S1 Pro) for Rs 99,999 and Rs 1,29,999, respectively (former showroom, including FAME II subsidies and excluding state subsidies). ). The scooter is available in 10 colors with a self-developed 8.5KW motor and a 3.97kWh battery pack.
Read again: Sales of Ola electric scooters exceeded SEK 1,100 in two days, says co-founder Bhavish Aggarwal.
Ola Electric began pre-launch reservations for electric scooters for Rs 499 in July and received orders for Rs 10,000 in just 24 hours. However, the company has not disclosed how many orders it has received so far.
What is driving demand?
India’s motorcycle EV story has startup-like hype, fall, and growth trails.
During the first boom of 2009-12, many night flight operators ran through major cities, sometimes offering Chinese assemblies at ridiculous prices.
They repacked their electric bikes (not electric bikes / scooters) and sold them as a motorcycle replacement. This disrupted the market and severely undermined consumer confidence. They were fundamentally incompetent products and severely damaged the credibility of the entire category.
However, early players such as Ampere EV, Hero Electric, and Electrotherm were able to stand in the storm, fight the waves, suffer years of loss, and then rebuild from scratch. By that time, the fly-by-night operator had already disappeared.
Things have changed over the years, the EV ecosystem is very active today, and the component supply system is very welcoming to Indian EV players.
It was at this point that Ora came in a completely different order of capital and investment in the business. It changed perceptions a lot, and while the government was pushing the EV story forward, it was able to get enough partners to believe it.
Read again: “Revolution”: Ora sells four electric scooters per second, says Bhavish Aggarwal
Ora was able to involve multiple partners to solve some adjacent problems, slowing down the process, as opposed to players who previously tried to solve all the problems themselves.
Ora is a popular ride-haling network, a unicorn with global marquee investors, and offers the highest level of visibility and brand recall of any other EV player on the market.
Moreover, for cost-conscious Indian customers, motorcycles have always been a viable means of transportation. In the personal commuting segment, the average mileage is about 17-20 km per day, and EVs can be managed by a home charging unit without the need for a large public charging network.
Addressing EV-specific issues such as range anxiety and charging infrastructure, Ola’s marketing power is driving fuel prices soaring daily, making a reasonably priced electric scooter a great alternative to everyday commuting. You can convince users that it is an option.
Accumulated demand and hype managed by the two-day event also helped attract such large bookings.
Meaning of demand for the industry
Ora’s success depends on its production capacity and ability to keep promises, but the hype that Ora has created and the potential success that will lead this revolution will transform India’s EV industry.
First, Ora and other EV manufacturers have established themselves as global producers, providing a unique opportunity for the country to become the world’s EV manufacturing hub.
The recently announced PLI scheme of 26,058 rupees for the automotive and drone industries is expected to result in an investment of over 42,500 rupees over five years, leading to an increase in production of over 2.3 rupees.
This scheme provides incentives for the global supply chain of advanced automotive technology and enables countries to move to eco-friendly electric vehicles.
In addition, about 20 states have launched EV policies, attracting EV manufacturers to the states, and developing incentives to popularize EVs as priority vehicles.
Read again: Bhavish Aggarwal says Ora sold an electric scooter worth 600 kroner a day
“Ola wants to establish itself as the largest manufacturer of electric vehicles, at least as a manufacturer of motorcycles, and see exports as a major market beyond domestic consumption. From a government push perspective, it is FAME’s. It must be a policy and an incentive, all of which are moving in a positive direction, and customers are not only serious about their business, but the government as well, and want to make this revolution a reality. “I think,” said Saket Mehra, a partner at Grant Thornton. Bharat said.
India is a highly preferred option as many global players are strategically planning to mitigate risk by not relying on a single country for EV imports, and Ora’s cross-border storytelling. Become.
This opportunity is also expected to force legacy players with a strong brand presence in the global market to introduce their products to their international market.
“With this demand, traditional IC players have not yet taken EV seriously. They have been less reluctant to promote EVs for fear of affecting the existing IC vehicle segment.
They will now find that it is inevitable, and that it is better to be proactive in EV betting than to fight a losing battle, “said Subhabrata Sengupta, executive director of Avalon Consulting.
“India really outperforms China in motorcycle manufacturing in local and global markets. Indian players balance quality and cost in the motorcycle arena. India takes the lead in the EV motorcycle market. This is a reset. EVs focus on electronics and software, which we are very good at, “said Arun Vinayak, founding partner and former Chief Product Officer of Ather Energy. I am.
The EV Revolution will also shift India primarily from a bike country to a scooter country, forcing traditional players to rethink their strategies and forcing more investment in EV space.
“90% of the motorcycle market will soon be scooters. It happened in Europe and Taiwan. Motorcycles are gaining more and more attention as a vehicle that can be shared by the whole family, regardless of age or sex. Also, more convenient. And it’s also great in terms of performance. Bikes are reduced to large segments of 300-500cc, primarily for enthusiasts, “says Vinayak.
Ora’s Excellent Electric Scooter Bookings: What’s Behind Demand and What Does It Mean for the Industry?
Source link Ora’s Excellent Electric Scooter Bookings: What’s Behind Demand and What Does It Mean for the Industry?