Latest news with #S1Z
NDTV
3 days ago
- Automotive
- NDTV
Ola S1, Gig Electric Scooter Deliveries Delayed While Roadster Reaches Dealerships
Ola Electric introduced the S1Z and Gig electric scooters as the most affordable models of its range in November 2024. At the time, the brand announced that the deliveries of the scooter would be initiated in the coming months. However, the brand has now announced that the two new additions to its EV portfolio will be delayed. The announcement comes at a time when the manufacturer is facing tough competition from legacy brands like Bajaj Auto and TVS Motors. The brand also mentioned that the launch of some new products will be delayed and will be scheduled in a sequential order. Presently, the brand has directed all its focus on the Roadster motorcycle, which is out for deliveries in the market. The manufacturer will also focus on advancing the platform through generational upgrades. "We are delaying the S1 Z, Gig/Gig+, and some other future products and will sequentially launch these products such that each product receives the right customer mindshare," Ola Electric said in a communication to its shareholders. Ola Gig Ola revealed its debut B2B-focused electric scooter, the Gig, which comes in two variants priced between Rs 39,999 and Rs 49,999. Additionally, it unveiled the S1 Z, priced at Rs 59,999, aimed at urban commuters on a budget. While deliveries for both models were initially scheduled to commence in April and May of this year, they have now been postponed to a later date. Meanwhile, the Roadster, which is the brand's first electric motorcycle, has started reaching dealerships after a delay in initiating the process. The process was initially supposed to start in March, which later got postponed to April, only to begin in May.
Time of India
3 days ago
- Automotive
- Time of India
Ola points to competitive intensity for market share loss, ebike volumes key to future growth
HighlightsOla's e2w market share fell from ~50% to 30% in FY25 with net loss at ₹870 crore and revenue down 62% YoY Focus shifted to Roadster motorcycles while delaying gig-focused models and three-wheelers Service time improved to 1.1 days with in-house registration and 4,000+ sales outlets EBITDA breakeven lowered to 25,000 units with projected Q1 revenue of ₹850 crore and 28–30% gross margin Sales have been plummeting, losses have widened and its erstwhile numero uno position in the electric two wheeler (e2w) market is under a visible threat. So Ola Electric has shifted gears and is now banking on the success of the Roadster motorcycle series and new gen scooters to keep afloat, as it delays the launch of some other products. The company has started deliveries of the motorcycles earlier this month, becoming the first major OEM to sell an electric bike which targets the mass segment. The market size for motorcycles is twice that of scooters and Ola believes it offers a compelling proposition in the total cost of ownership of a Roadster. The company has also delayed the launch of some models it had announced earlier, including models aimed at the gig workforce , the S1Z scooter and three wheelers. Other steps undertaken to stem the market share plunge include beefing up the distribution network, rejigging the vehicle registration process, improving delivery timelines and putting a system in place for achieving targeted cost savings. EBITDA has now come down to almost 25,000 units from earlier what we had communicated to you and this is because the gross margin is expanding on one one side and then our cost is reducing on the other Aggarwal 'So cost savings are on track and as a result of both cost savings as well as our network Project Vistar , both together, our breakeven point of our auto business segment EBITDA has now come down to almost 25,000 units from earlier what we had communicated to you and this is because the gross margin is expanding on one one side and then our cost is reducing on the other side,' Co-founder and CEO Bhavish Aggarwal told analysts after the FY25 results. In guidance for the current quarter, Aggarwal said the revenue forecast was ₹850 crore, about 65,000 deliveries and a gross margin of about 28-30%, 'which is much higher than Q4'. In the March quarter of last fiscal, Ola's deliveries fell by almost half year on year and gross margin of just over 19%. Net loss widened to ₹870 crore (₹416 crore) while revenue from operations declined by 62% year-on-year to ₹611 crore. Ola acknowledges legacy OEMs' role For the first time, Ola Electric has acknowledged the role of legacy electric two wheeler (e2w) OEMs in chipping away at its dominant market share last fiscal. 'We have seen increased competitive intensity from traditional OEMs across all levers including distribution, product expansion and discounting. This, combined with operational challenges in scaling up our direct to customer (D2C) sales and service network and slower pace of EV penetration growth in FY25 resulted in quarter-on-quarter loss of market share,' the company said in an investor presentation. Also read: TVS wears the crown as Ola slides to second slot in April electric two wheeler sales Ola had been the undisputed market leader but in FY25, TVS Motor Company and Bajaj Auto began racing ahead, effectively making it a three corner race to the crown. Apart from increased competitive intensity from traditional OEMs, Ola has also cited its own operational challenges in scaling up the direct-to-consumer network for the quarter-on-quarter loss of market share. At the close of fiscal year 2025, Ola held about 30% share of the e2w market against nearly 50% in the year ago period and in April as well as May till date, TVS and Bajaj have raced past Ola in sales volume. Operational challenges Aggarwal has acknowledged the myriad operational challenges Ola has faced since at least September last year, 'first with service and then with registrations, but we've also significantly improved the bar on both on service. For example, we have now brought our service stat down to 1.1 days which is industry leading as well as on deliveries,' he said. But there was no word on the status of the thousands of complaints customers had registered against faulty product, which ultimately led to a probe by the CCPA. Our focus now is to increase productivity, sales productivity as well as sales per store of the stores that we have opened Aggarwal Also, at the beginning of the calendar year, Ola had faced issues with its vehicle registration process as it ended the contract with a vendor for enabling these registrations. Aggarwal said the registration process has been brought in house and thereafter, delivery timelines have significantly reduced. 'In addition we have expanded to about a total of 3200 odd company owned stores and a total of 4000 stores where we sell. Our focus now is to increase productivity, sales productivity as well as sales per store of these stores that we have opened up,' he said. Also read: In distribution rampup, Ather eyes hundreds of cities where competitors already present While all the steps Ola has taken to wrest back market share, improve its margins and bottomline appear to be prudent, the competitive intensity is unlikely to abate. Both, TVS and Bajaj, are eying expansion in product portfolio as well as distribution networks to further their electric dreams.
