Ola Electric CEO Bhavish Aggarwal Compares EV Market Dominance to Maruti Suzuki as IPO Nears

Ola Electric CEO Bhavish Aggarwal recently spoke at a press conference, comparing the company to the car-making giant Maruti Suzuki in terms of market share within the electric vehicle (EV) industry in India. He stated that Ola Electric is leading the EV market, similar to Maruti Suzuki’s position in the traditional car market.

Market Position

“We’ve already established our market position in the EV space. We’re making significant progress, and others are far behind. We are the leaders in the EV industry,” Aggarwal said during the launch event for their initial public offering (IPO).

Aggarwal also highlighted the company’s rapid growth and ambitious plans. He emphasized that the rise of electric vehicles is the most significant change in the automotive industry in the past hundred years. “Our mission is to make India a global hub for electric vehicles,” he added.

Steady Growth

He discussed the steady growth of electric vehicles and their potential, noting that even traditional carmakers are starting to enter the EV market. Aggarwal explained that Ola’s business model is based on three main pillars: in-house research and development, manufacturing and supply chain, and a direct-to-consumer (D2C) omni-channel distribution model.

Launched 7 Products

The CEO mentioned that Ola Electric has launched seven products and announced four more. The company holds a 39 percent market share in India’s EV sector for the first quarter of FY25. He also shared that they have a 20 GWh allocation from the government, with trials already underway and commercial production set to begin next year.

Gross Margins Improved

Harish Abichandani, Ola Electric’s Chief Financial Officer, noted that the company’s adjusted gross margins have improved significantly from 7.63 percent to 16.47 percent over the past two years, thanks to investments in technology. He also mentioned that while the current production capacity at their Future Factory is 1 million units, the facility can potentially expand to produce up to 4 million units.

The eagerly awaited IPO of Ola Electric Mobility Ltd is set to launch on Friday, August 2. The price range for the IPO is between ₹72 and ₹26, and the offer will close on Tuesday, August 6.