Auto Sales July 2024: Ola Registers Massive 39 Per Cent Growth

Ola Electric, India's leading electric two-wheeler manufacturer, has reported significant sales growth in July 2024. According to the Vahan Portal, the company registered 41,597 vehicles, representing a 114% year-on-year increase and capturing about 39% of the market share.

This growth comes as Ola Electric prepares for its Initial Public Offering (IPO), scheduled to run from August 2 to August 6. The company aims to raise approximately ₹5,500 crores, with an estimated valuation between ₹35,162 to ₹36,863 crores. A special announcement regarding the IPO is expected tomorrow in Mumbai, with a potential stock exchange listing on August 9.

Ola Electric's recent financial disclosures reveal a 90% increase in revenue, reaching ₹5,009 crores. This growth is largely attributed to strong sales of the Ola S1 scooter line. In June 2024, the company surpassed 200,000 registrations within the first half of the year, achieving a 46% market share.

Despite the revenue growth, Ola Electric reported increased losses of ₹1,584 crores, up 8% from the previous year. The company anticipates further losses as it continues to expand operations and invest in research and development.

Looking ahead, Ola Electric plans to allocate ₹1,600 crores from its IPO proceeds towards R&D initiatives. The company is focusing on its two-wheeler portfolio and exploring international markets for expansion.

In response to consumer feedback, Ola has introduced an 8-year/80,000 km extended battery warranty and launched a new 3kW fast charger as an accessory. The company is also developing its own 4680 battery cells, expected to be commercially viable by 2025. Additionally, Ola will also unveil its first electric motorcycle this month on the eve of Independence day. The upcoming two-wheeler from the Bengaluru-based manufacturer will be a commuter motorcycle, and to know more about it click the link here. 

As Ola Electric moves forward with its IPO and continues to develop new technologies, it aims to maintain its position in India's growing electric mobility sector. However, the company faces ongoing challenges in balancing growth with profitability in the competitive EV market.