Ola Electric to Launch Rare Earth Magnet-Free Motors by Q2 FY26

Ola Electric is set to introduce motors free of rare earth magnets by the second quarter of FY2025-26, marking a significant shift in its electric vehicle (EV) strategy. 

The move aims to reduce dependency on imported materials, cut costs, and align with global sustainability trends. Bhavish Aggarwal, Co-founder and CEO, OLA Electric, confirmed this development in an Analyst call today (July 14).

Rare earth magnets, commonly used in EV motors, are expensive and largely sourced from China. By switching to alternative technologies like induction motors or ferrite magnets, Ola could lower production expenses and mitigate supply chain risks. The company claims the new motors will maintain performance while being more eco-friendly.

Industry experts suggest this could pressure competitors like Ather Energy, TVS, and Bajaj to explore similar alternatives. However, challenges remain in ensuring efficiency and power output match current standards.

Ola’s pivot comes as India pushes for greater EV adoption under the FAME III scheme. If successful, the innovation may set a new benchmark in the two-wheeler EV segment, prompting rivals to accelerate their R&D efforts. The market will closely watch Ola’s execution, as cost and reliability will determine customer response.