Ola Electric Gears Up for Launch of Electric Auto-Rickshaw “Raahi”

Olae Electric Scooter "Raahi"
Preeti Bali / 8:03 am / March 14, 2024

Ola Electric, a prominent player in the Indian electric vehicle (EV) market, is reportedly on the verge of launching its first electric auto-rickshaw. Codenamed “Raahi,” the three-wheeled passenger vehicle is expected to be unveiled later this month and will be available for direct purchase by consumers.

Expanding Market Reach with Commercial Vehicle Entry

According to a report by The Economic Times, Ola Electric has been diligently developing the Raahi for several years. This initiative aligns with the company’s broader strategy of entering the commercial vehicle segment and expanding its product portfolio beyond electric scooters. The Raahi is anticipated to compete directly with established players in the electric auto-rickshaw market, such as Piaggio Ape e-city, Bajaj RE, and Mahindra Treo.

Strategic Announcements Leading Up to IPO

Sources familiar with the company’s plans revealed to the Financial Daily that Ola Electric is preparing a series of significant announcements in the coming months leading up to its initial public offering (IPO). The launch of the Raahi is reportedly part of this pre-IPO strategy. In December 2023, Ola filed a draft red herring prospectus (DRHP) with the intent to raise up to Rs 5,000 crore through a fresh issue of shares, along with an offer for sale of existing shares.

Price Cuts and Increased Sales Bolstering Market Position

In a separate development, Ola Electric announced price reductions for its existing electric scooter models, the S1 X+, S1 Air, and S1 Pro, in February 2024. The flagship S1 Pro witnessed the most significant price drop of Rs 17,500, bringing its revised price down to Rs 1,30,000. Similar reductions were implemented for the S1 Air and S1 X+ models, making them more competitive in the market. These strategic price cuts likely contributed to Ola Electric’s impressive sales performance in February. The company registered approximately 35,000 units, solidifying its position as the leading electric two-wheeler manufacturer in India. This achievement marks Ola Electric’s highest monthly sales volume to date, reflecting a remarkable year-over-year growth of nearly 100%.

Ola Electric’s upcoming launch of the Raahi electric auto-rickshaw, coupled with its recent price cuts and strong sales figures, positions the company for continued growth and leadership in the Indian electric vehicle market.

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