Ola Electric Mobility Ltd. saw its market cap soar by $1 billion in just two days after unveiling a new electric scooter tailored for delivery workers.
Shares of India’s largest electric-scooter maker jumped 29% through Thursday, driven by the launch aimed at tapping into the growing demand from the country’s gig economy workforce.
The Ola Gig, priced at ₹39,999, is designed for shorter delivery trips, catering to the needs of quick commerce workers, the company said. Additionally, Ola introduced a revamped S1 scooter targeted at urban riders, including young professionals, students, women, and elderly users. Both products align with Ola’s goal of “democratizing electric mobility” in India.
Despite recent pressures on shares following its August debut and rising consumer complaints, Ola’s aggressive expansion plans have analysts optimistic. Citigroup initiated a “buy” recommendation this week, with Goldman Sachs and HSBC maintaining similar ratings. Shares remain over 35% below their peak but are gaining momentum with renewed investor confidence.
Ola aims to cement its leadership in India’s EV market while expanding globally, with plans to roll out 20 new products over the next two years, including motorcycles and three-wheelers targeting both mass and premium segments. Deliveries of its Roadster motorcycle series are set to begin in March 2025.
The company’s Gen 3 platform, operational by January 2025, is projected to reduce material costs by 20%, enabling more cost-efficient production. Innovations such as structural batteries and magnet-less motors are expected to boost performance and cut warranty costs.
Ola is also ramping up its distribution network, increasing company-owned stores from 782 to 2,000 by March 2025 and expanding service points to over 10,000 by 2025 through a network partner program. Trial production of in-house lithium-ion cells has already started, with commercial deployment planned for FY26, reducing reliance on suppliers and improving margins. Long-term gross margins are expected to exceed 30%, even as subsidies decline.