Latest news with #BhavishAggarwal
Time of India
5 days ago
- Business
- Time of India
Leadership shakeups cloud Ola Electric's revival attempts
People Exclusives Leadership shakeups cloud Ola Electric's revival attempts Bhavish Aggarwal, co-founder and CEO of Ola Consumer, and founder of Ola Electric; image credit: Visualisation by Sadhana Saxena Via AI Synopsis Bhavish Aggarwal-led EV maker reported an improvement in sales, revenue, and margins which sparked an uptick in the stock price for a day. But leadership churn clouds the progress — the new CBO quit in three weeks, the sales head in one, and the legal team is seeing exits. The company has just faced two weeks of uncertainty around the continuation of three key people. When a company's top brass keeps exiting faster than customers can say 'electric scooter', it is a red flag that cannot be ignored. Ola Electric, the company that stunned the electric two-wheeler market with its swift and forceful foray, is struggling with a leadership crisis that has aggravated in recent months amid slump in sales, stock price crash, regulatory actions, and product delays. 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Mint
6 days ago
- Automotive
- Mint
Light rare earths, no magnets, and a resolve to break free of China's iron grip
New Delhi: Indian auto component and two-wheeler makers have devised a plan to break free from China's stranglehold on magnets: replace heavy rare-earth elements with light ones, or better yet, build magnet-free automotive motors. Sona Comstar, the country's eighth largest parts maker, has developed new motors using light rare earth elements like cerium, samarium and neodymium,according to a top company Energy Ltd's co-founder and chief executive Tarun Mehta, too, toldMintthat the two-wheeler industry can move towards light rare earth Ola Electric's founder and managing director Bhavish Aggarwal informed investors on Monday that the company has developed magnet-free motors, which will be installed in vehicles whose deliveries will start in the October to December quarter. Rare earth elements, while abundant but not easily found in large mineable deposits, are known for their unique magnetic and luminescent properties. They are widely used in automotive motors and LED lights. China dominates the refining and supply of 90% of heavy rare earths or those with higher atomic weight, according to estimatesby the International Energy its share in light rare earths is estimated to be lower at 60-70%, making the supply chain more diverse. Gurugram-based Sona Comstar said light rare earth solutions can be used in the medium term by two- and three-wheeler makers, and even small car manufacturers, as they require less power to run. '[But] all these alternative motors would require months of testing and validation with customers before commercial production can begin," Vivek Vikram Singh, managing director and group chief executive at Sona Comstar, said in response toMint'squeries. 'In the short term, there is no alternative to Chinese heavy rare earth element (HREE) magnets, but in the medium term, HREE-free magnets can be used as viable alternatives…"About 41% of Sona Comstar's revenue in the financial year 2025 came from the manufacturing of micro/plug-in hybrid starter motors, traction motors and controllers, conventional starter motors and suspension motors. Traction motors, which power electric vehicles, require magnets. Other types of motors can also use rare earth magnets for compactness and high performance, but they can operate without them as well. 'For the last couple of years, we have been developing rare-earth-free motors," Ola Electric said in a shareholder's letter. 'We accelerated this program in April when the rare earth cuts happened and have already productionised our rare-earth-free motors, which will be coming into our products starting next quarter." Diversified supply chain China started restricting exports of rare earths in April after trade tensions worsened with the US due to tariffs imposed by the Donald Trump administration. Indian automakers raised an alarm soon after. In May, Bajaj Auto Ltd said after the company's January-March results that the entire electric vehicle business would be threatened due to new restrictions imposed by China on exports. China imposed restrictions on seven rare-earth elements, mostly heavy rare earths including yttrium, scandium, lutetium and dysprosium. 'The supply chain for light rare-earth elements (LREEs)…is more diversified than that for heavy rare-earth elements (HREEs), as LREEs (like cerium and lanthanum) are more abundant in different countries, including India, and are less affected by China's specific restrictions," said Rishabh Jain, senior programme lead, Council on Energy, Environment and Water (CEEW). Ather Energy's Mehta said, 'The industry has a way of moving past this. Stop using heavy rare-earth magnets. Unlike cars, trucks, or buses, our industry can build motors without using heavy, rare-earth magnets. We can move towards lighter, rare-earth magnets." Doubts on efficiency However, there are still doubts regarding whether the efficiency of heavy rare earth magnets can be matched. 'The ongoing research indicates that substituting heavy rare earths or even neodymium with more abundant light rare earths like cerium can result in reduced magnetic strength and thermal stability, meaning a loss in performance at high temperatures, which are crucial for automotive and high-efficiency motor applications," CEEW's Jain said. 'Substituting HREEs with cerium in neodymium-based magnets can reduce costs but requires 20–30% more material to match HREE performance, thus increasing motor size/weight." Companies, including Sona Comstar, are working on finding solutions to ensure performance does not suffer due to the change in elements. Yet, not many solutions are still available for heavy passenger vehicles. 'For larger power motors for larger vehicles, these alternatives (light rare earths) seem difficult without sacrificing efficiency, range and/or cost," Singh of Sona Comstar said. Earlier, Reuters reported that Sona Comstar is also looking to make rare earth magnets within the country to become self-sufficient in the supply chain. Pricing concerns Industry executives also worry that there will be a rush for light rare earth elements, which are found in abundance outside of China, but can still lead to disruptions and increases in prices. This suggests that in the long term, magnet-free motors can also become viable. Ola Electric finds magnet-free motors a better solution as they have managed to match the performance of magnet-based motors, according to its letter to investors. 'These motors ensure no business continuity risk, are parity in performance and save money as rare earth magnets are costly." According to Ankit Somani, co-founder at Conifer, a rare earth magnet-free motor maker, although light rare earth production is more diversified, the processing is still dominated by China. 'Moreover, there is a rush already from across the globe for securing light rare earths from countries other than China, which has led to price increases and longer lead times."
Time of India
6 days ago
- Automotive
- Time of India
Ola Electric shares jump nearly 20% despite halved revenue, continued losses
BENGALURU: Shares of Ola Electric surged 19.75% on Monday to close at Rs 47.66, even as the company reported a sharp year-on-year drop in revenue and a consolidated net loss of Rs 428 crore for the quarter ended June 30, 2025. The stock hit an intraday high of Rs 47.76 on the NSE, up from its previous close of Rs 39.80. The rally came despite the company's revenue from operations halving to Rs 828 crore in Q1 FY26, from Rs 1,644 crore in the same quarter last year. On a sequential basis, revenue rose 35.5% from Rs 611 crore in Q4 FY25. Ola's net loss narrowed from Rs 870 crore in the previous quarter, while Ebitda losses reduced to Rs 237 crore from Rs 695 crore. Vehicle deliveries for the quarter stood at 68,192 units, up 32.7% sequentially, aided by stronger demand for its Gen 3 scooter portfolio, which now accounts for over 80% of total sales. The company's auto segment turned Ebitda positive in June, its first profitable month since launch. Gross margins in the auto business improved to 25.6% in Q1, from 13.8% in Q4, helped by internal cost controls, vertical integration and lower warranty costs. Despite the top-line contraction, investor sentiment appeared buoyed by the company's operational turnaround efforts. On a post-earnings analyst call, founder and CEO Bhavish Aggarwal said Ola was 'structurally profitable' at the auto level and would remain Ebitda positive from Q2 onwards. He also cited cost-cutting measures under Project Lakshya that brought down monthly opex in the auto business from Rs 178 crore to Rs 105 crore. Free cash flow improved to -Rs 107 crore from -Rs 455 crore last quarter. Ola said it is on track to commercially deploy its in-house Bharat 4680 cell by the Navratri festival and launch High-Voltage Rare-Earth-free (HRE) motors in Q3. The company reaffirmed its FY26 guidance of 3.25-3.75 lakh vehicle sales and revenue of Rs 4,200-4,700 crore, with auto Ebitda expected to exceed 5% for the full year. The adoption of its paid software layer, MoveOS+, rose to nearly 50% of new users in Q1, up from 2% in Q4. 'This is a true digital business within our hardware business,' Aggarwal told analysts, projecting multi-hundred crore topline potential from software in the coming years. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
6 days ago
- Business
- Economic Times
Crypto-focused Grayscale confidentially files for US listing
NYT Mini Crossword hints and answers July 14: Here's how to solve the Monday brain teaser School Assembly Headlines for July 15: Top national, international, sports and business updates Ola expects auto business to be free cash positive by FY26-end: Bhavish Aggarwal Jim Cramer doubles down on Jensen Huang: Own Nvidia, don't trade it, says stock's up 42,000% since his pick Temasek eyes more Indian family-run businesses after Haldiram's deal Govt not mulling to extend ISTS charges waiver for solar, wind projects Crypto currency may render recognised money untraceable: Delhi HC Mizoram decides to collect biometrics, biographic data of Myanmar refugees 'Is this world-class?': AAP leader Sanjay Singh's wife slams IRCTC over 'papad-like roti, watery dal' on Tejas Express India achieves 50% non-fossil fuel power generation capacity 5 years ahead of 2030 target Influential cleric steps in to save Indian nurse Nimisha Priya facing execution in Yemen XRP price alert: Analyst sees massive 60% rally incoming. What is XRP and how can you buy it? Saina Nehwal's old statement resurfaces after split from husband, Parupalli Kashyap: 'We're opposite in every way except badminton' Crypto surge sparks biggest bull run yet: Bitcoin tops $120K, Ethereum rallies 17%, Solana climbs 11%, XRP jumps 25%, Dogecoin surges 23% — is $130K next? Amazon Prime Day 2025 LAST DAY - Best Deals across Home, Kitchen, Garden, Furniture and other categories
Mint
6 days ago
- Automotive
- Mint
Ola Electric puts cell PLI timeline on backburner amid profitability push
Ola Electric Mobility Ltd has said that it will not meet the timelines set by the government to get incentives under the production-linked incentive scheme as it doesn't believe it needs to build beyond 5GWh capacity for its cell manufacturing plant until financial year 2029. The delay in expanding beyond 5GWh capacity comes as the firm pivots to a more profitability-centric approach than looking at aggressive penetration after reporting a 50% year-on-year drop in revenue to ₹ 828 crore and a surge in losses to ₹ 428 crore in the April-June period. However, the company achieved operational profitability in June for its automobile business, which led to an 18% jump in its stock price. During Ola Electric's quarterly earnings call on Monday, managing director and chief executive officer (CEO) Bhavish Aggarwal said that the company will incur a maximum ₹ 100 crore penalty for not meeting PLI targets and doesn't believe that PLI incentives are needed to have a profitable business case for the cell plant. After 5GWh capacity is operationalized and the cell business becomes stable, the company will look to enter the battery storage business and sell the in-house 4680 cells to other companies. Moreover, the company will also look at relevant export markets for its product. 'We are in touch with the government to relook the timelines,' Aggarwal said in the post-results earnings call. In 2022, Ola signed an MoU with the government to build 20GWh capacity, with ₹ 225 crore investment per gigawatt hour in the first two years itself. Moreover, the company will also look to redeploy ₹ 1,227 crore raised as part of its initial public offering in August 2024, which was initially meant to expand 5GWh capacity to 6.4 GWh by April 2025. However, Aggarwal insisted that the cell remains an important pillar in the long-term strategy of the company. 'We should be seen as a vertically integrated cell company with a large anchor client…The rare earth situation shows how important it is to have this capacity,' he said. This comes four months after Ola Cell Technologies, Reliance New Energy Battery Storage and Rajesh Exports received a government notice for missing the deadlines for operationalizing their battery plants within the agreed time frame. In response, the companies are said to have requested for a relaxation in timeline for the scheme, but there is no clarity from the government yet whether the firms will receive any relaxation. In an interview with Mint, Union heavy industries minister H.D. Kumaraswamy had earlier said battery makers in the country faced challenges in meeting timelines under the production-linked incentive scheme for advanced chemical cells (PLI-ACC) due to unavailability of technology, skilled manpower and upstream components, besides challenges in importing essential equipment and machinery. The company suggests that its focus in the upcoming quarters will be on profitable growth, led by improvement in margins. In the first quarter of this fiscal year, the Ebitda margin of the company's auto business improved to -11.6% from -90.6% in the previous quarter. However, in the same quarter last year, its margins were higher at -6.8%. The company managed to cross its guidance of 65,000 sales in the first quarter as it recorded 68,192 scooter and bike sales during the quarter. For the full financial year, the company expects 3,25,000-3,75,000 vehicle sales and ₹ 4,200-4,700 crore revenue. In FY25, it recorded 344,000 sales and ₹ 4,514 crore revenue. 'In sync with this industry dynamic, we've made a pivot to our strategy over the last two quarters from aggressive penetration to balanced profitable growth,' Ola Electric said in a letter to shareholders. 'Our goal in this phase is to consolidate and institutionalize our operations, improve our margins and get ready for the next phase of growth driven by our expanding product portfolio, improving distribution and engaging the next set of customers entering the industry.' The company is not going to undertake any major growth capital expenditures for its automotive business in the current financial year. The company has also given an estimate of how much cell capacity will be needed to meet captive demand of vehicles going forward. 'For reference, if the battery capacity per vehicle is 4kWh, then 1.4 GWh is 3,00,000 annual vehicles and 5 GWh is 12,00,000 annual vehicles,' the company said in the letter. 'Given that the EV market has evolved slower in recent quarters, we don't foresee the need to expand beyond 5 GWh till FY29.' Aggarwal told investors that for the cell business, the capacity at which it will achieve breakeven point will be 3.5-4 GWh.
