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Ola Electric Gears Up for $7 Billion IPO, Setting a Milestone in India’s EV Market

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OLA

MUMBAI, June 27 (Reuters Breakingviews) – Ola Electric is preparing for a significant milestone with its upcoming initial public offering (IPO), aiming for a valuation of $7 billion. This target is a notable 30% increase from its last fundraising round in October.

Strong Investor Support

Ola Electric has garnered substantial backing from major investors, including SoftBank Group, Tiger Global, and Singapore’s Temasek. These investors are confident in Ola’s potential to lead India’s transition to electric vehicles (EVs), particularly in a market where two-wheelers vastly outnumber four-wheelers.

Market Dynamics

In the financial year ending in March, India saw the sale of 17 million scooters and motorbikes, nearly five times the number of cars. Despite this, fewer than 5% of scooters are electric, highlighting a significant opportunity for growth.

Competitive Landscape

Ola Electric began delivering electric scooters in 2021 and now commands over a third of the market share. However, competitors like Bajaj Auto and TVS Motor are rapidly catching up. Bajaj has more than doubled its market share to 11%, while TVS Motor aims for electric vehicles to constitute a quarter of its scooter sales by 2027.

Valuation and Profitability

At the $7 billion valuation, Ola Electric would be valued at 11 times its sales, which is nearly double the sales multiple for Bajaj Auto and triple that of TVS. While Ola remains loss-making, its rivals offer investors more affordable access to the burgeoning EV market and are already profitable.

OLA Market shares

PC:-reuters

Market Sensitivity

Ola’s exclusive focus on electric vehicles makes it particularly sensitive to market fluctuations. In April, the company cut prices for its cheapest scooter model to sustain demand after New Delhi reduced buyer incentives. Meanwhile, Ola’s competitors are active in the $100 billion market for India-made motorbikes and scooters, with exports targeting regions such as Africa, Latin America, and Southeast Asia.

As Ola continues to innovate and expand, the competition and market dynamics will undoubtedly shape the future of India’s EV landscape.

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Prashant Sharma

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PM E-DRIVE ₹2,000 Crore Incentives for EV Charging Infrastructure

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PM E-DRIVE ₹2,000 Cr for EV Charging Boost

The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, with an ambitious outlay of ₹10,900 crore, aims to propel the growth of electric vehicles (EVs) and their infrastructure across India over the next two years. Notably, ₹2,000 crore from this fund has been earmarked specifically for establishing public EV charging stations, reflecting a significant increase compared to the previous FAME-2 scheme. The final guidelines for disbursing these incentives are expected to be released within a month, according to Hanif Qureshi, Additional Secretary of the Ministry of Heavy Industries, as reported by The Indian Express.

The initiative is designed to enhance local manufacturing capacity and attract global investment in the EV sector. Detailed guidelines for the scheme, initially notified in late March 2024, will soon be published to ensure effective implementation. Speaking at a Federation of Indian Chambers of Commerce & Industry (FICCI) event, Qureshi emphasized the government’s commitment to facilitating investments by fostering a robust policy framework. The draft guidelines, which have undergone stakeholder consultations, are currently under review by state governments.

A key feature of the upcoming guidelines is the establishment of state-level committees, headed by the Chief Secretary, to aggregate demand for EV chargers. Each state will then submit a proposal to the Ministry of Heavy Industries for approval. The allocation of incentives will prioritize factors such as the number of EVs in a city, traffic volume, and the presence of state-level EV policies or additional incentives. Qureshi noted that proposals exceeding the ₹2,000 crore allocation might be received, necessitating a strategic approach to fund distribution.

The guidelines will also address upstream infrastructure requirements, particularly for financially constrained electricity distribution companies (DISCOMs). This focus aims to strengthen the power supply network, a critical element for expanding EV charging facilities.

Additionally, Qureshi revealed plans for releasing comprehensive rules under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) within three to four weeks. This complementary initiative seeks to reduce import duties on luxury electric car models priced above $35,000 from 100% to 15%, provided manufacturers commit at least $500 million to set up local production facilities. Such measures are expected to significantly bolster India’s EV ecosystem and attract leading global players to establish a presence in the country.

The PM E-DRIVE scheme’s enhanced funding for EV infrastructure is poised to accelerate India’s transition to sustainable transportation. By fostering local manufacturing, streamlining policy frameworks, and incentivizing infrastructure development, the initiative underscores the government’s commitment to reducing carbon emissions and promoting clean energy.

Popular EV models like Ola’s S1 Pro (2nd Generation) and S1 Air, as well as TVS’s iQube S, highlight the growing consumer interest in affordable and efficient electric vehicles. Prices for these models range from ₹75,000 to ₹1.56 lakh, making them accessible to a broader audience. As the government’s policies take shape, they are expected to further energize the EV market, ensuring a sustainable and eco-friendly future for Indian transportation.
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Bengaluru Needs 36,000 Public EV Chargers to Support Growing EV Population by 2030

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Bengaluru's EV Boom 36,000 Chargers Needed by 2030

Bengaluru is seeing a fast shift towards electric vehicles (EVs) as additional occupants decide on eco-accommodating and financially savvy options in contrast to customary fuel-controlled vehicles. As indicated by a review directed by the Middle for Investigation of Science, Innovation, and Strategy (CSTEP), the city is projected to have north of 23 lakh EVs by 2030. This rising reception of EVs features the earnest requirement for hearty charging foundation to help the developing number of vehicles and guarantee a smooth change to reasonable transportation.

To fulfill the needs of this flood in EV utilization, Bengaluru will expect north of 36,000 public charging weapons, 400 charging stations, and 141 sections of land of land by 2030. These necessities are huge, given the size of arranging and execution expected to lay out such foundation. The review accentuates the significance of decisively finding charging stations to amplify their availability and utility. Key areas recognized incorporate metro stations, IT parks, fuel stations, shopping centers, and other high-traffic regions. These destinations fall inside the city’s nine Territorial Vehicle Office (RTO) zones, making them ideal for taking care of day to day EV clients.

The test of battery charging stays a significant obstacle in the far reaching reception of EVs. As the quantity of EV clients develops, guaranteeing satisfactory and effective charging choices becomes basic. As per the review, the 141 sections of land expected for setting up the foundation is equivalent to the space required for around 700 petroleum siphons, underlining the size of land use included. This land portion will assume a urgent part in working with the development of Bengaluru’s EV organization and making it simpler for clients to helpfully charge their vehicles.

CSTEP specialists likewise directed a business examination to survey the benefit of introducing EV charging stations in Bengaluru. Their discoveries show that charger usage rates in the city could go from 25% to half by 2030, making it a reasonable business opportunity for EV charging organizations. To guarantee reasonableness for clients, the expense of charging has been assessed at a limit of ₹11 to ₹15 each kilowatt-hour (kWh), contingent upon the kind of charger.

The review features the significance of putting resources into EV framework to stay up with the city’s developing inclination for electric versatility. Laying out broad and solid charging choices won’t just help the city’s EV clients yet in addition urge others to do the change to electric vehicles, decreasing contamination and advancing supportable practices.
Bengaluru's EV Boom 36,000 Chargers Needed by 2030

As Bengaluru pursues making a practical future, the city is likewise seeing a flood in the prevalence of EV models, for example, Ola Electric’s S1 Expert (second Era), S1 X+, and S1 Air EV, alongside televisions’ iQube S. These models are drawing in buyers with their reasonableness, execution, and natural advantages, further driving the interest for a vigorous EV biological system.All in all, Bengaluru’s EV transformation is picking up speed, yet tending to the difficulties of charging framework stays basic. By decisively arranging and carrying out charging arrangements, the city can guarantee a consistent change to greener transportation, setting a model for maintainable metropolitan portability.

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Prashant Sharma

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Odysse to Supply 40,000 EVs to Zypp for Greener Deliveries

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Odysse to Deliver 40,000 EVs to Zypp

Odysse Electric, a main name in electric vehicle (EV) producing, has reported a critical organization with Zypp Electric, a conspicuous last-mile conveyance specialist co-op. As a feature of this cooperation, Odysse will supply 40,000 electric vehicles to Zypp, denoting a significant stage toward decarbonizing last-mile conveyance tasks. This supply bargain is essential for a bigger speculation pointed toward changing metropolitan and rustic portability through manageable arrangements.

Laid out in 2020, Odysse Electric has quickly left an imprint in the EV area with its different scope of e-bikes. The organization’s item portfolio incorporates seven models, offering both low and rapid bikes. Among these are conveyance bikes custom fitted explicitly for B2B needs, displaying Odysse’s obligation to meeting the remarkable prerequisites of business clients. By improving its creation and appropriation capacities, Odysse plans to increase its result to fulfill the developing need for eco-accommodating and proficient transportation choices in both individual and conveyance portions.
Odysse to Deliver 40,000 EVs to Zypp

The cooperation with Zypp Electric is important for Odysse’s bigger vision to help the thriving last-mile conveyance industry while tending to the requirement for clean versatility arrangements. Zypp Electric, which has set an aggressive objective of conveying 200,000 EVs over the course of the following a few years, sees this organization as a foundation of its procedure to decarbonize last-mile strategies. Akash Gupta, Fellow benefactor and Chief of Zypp Electric, featured the arrangement between the two organizations, expressing that Odysse’s obligation to top notch EVs and its capacity to tweak vehicles to Zypp’s necessities make it an ideal accomplice for this drawn out mission.

This essential arrangement not just highlights the rising reception of EVs in the conveyance area yet additionally accentuates the developing interest for practical transportation in metropolitan and provincial regions. The two organizations expect to add to a greener future by lessening fossil fuel by products and advancing energy-productive portability arrangements.

By tending to the calculated difficulties of last-mile conveyance and utilizing Odysse’s mastery in EV fabricating, this organization is set to make a critical effect in India’s excursion toward economical transportation. As buyer and business interest for eco-accommodating options keeps on rising, coordinated efforts like this show the capability of imaginative advancements to drive significant change in portability and planned operations.
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Prashant Sharma 

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