Ola’s In-House ABS Push Could Help Save It Money

Ola Electric is reportedly developing its own Anti-lock Braking System (ABS) in-house, a move that could reshape its cost structure and strengthen its position in India’s evolving EV market. Currently, Ola relies on suppliers like Bosch for ABS, but bringing production in-house may reduce long-term costs despite high initial R&D expenses (estimated at ₹100-200 crore).

Cost Benefits & Strategic Gains

By internalising ABS manufacturing, Ola could cut per-unit costs, avoid import dependencies, and gain supply chain control – critical as it scales production. A LiveMint report (2023) highlighted that localisation helps EV makers save 15-20 per cent on component costs over time. Additionally, in-house ABS allows customisation for Ola’s scooters, improving performance and safety compliance.

Alignment with Government Policies

India mandates ABS for two-wheelers above 125cc, and stricter norms may follow. Ola’s move supports the Make in India initiative and positions it as a leader in localised safety tech. The Economic Times (2024) noted that homegrown ABS solutions could qualify for PLI incentives, further reducing costs.

Challenges Ahead

Developing reliable ABS requires rigorous testing and certification. Competitors like TVS and Bajaj use established suppliers, but Ola’s gamble could pay off if execution succeeds.