Ola Electric to Use In-House Battery Cells from 2025; Launch of Electric Bikes Slated for Next Year

Ola Electric is set to revolutionize its product line by powering its scooters with self-manufactured battery cells starting in 2025. The EV manufacturer is currently developing lithium-ion cells at their Gigafactory in Tamil Nadu.

In a recent press briefing, Bhavish Aggarwal, Founder and Managing Director of Ola Electric, stated, "We will have our own cells within our scooters by early next year." He emphasized that Ola aims to reduce its dependency on imports and lower the cost of its electric vehicles (EVs). The indigenously produced li-ion cells at the Gigafactory are expected to reduce battery costs by up to 50%, which will, in turn, reduce overall EV production costs. These savings are likely to be passed on to customers, resulting in lower prices for Ola Electric scooters from 2025.

Currently, Ola’s Gigafactory operates at a capacity of 1.49 GWh, or approximately 1.49 million kWh, with plans to expand to a capacity of 100 GWh. The facility's present capacity is 5 GWh.

This strategic move comes as the Indian government considers reducing subsidies for electric two-wheelers. The discontinuation of FAME 2 and the introduction of the Electric Mobility Promotion Scheme 2024 (EMPS) have made electric scooters and bikes more expensive. In response, electric two-wheeler manufacturers, including Ola, have introduced more affordable models like the Ola S1 X and TVS iQube 2.2kWh.

In addition to the battery advancements, Ola is on track to launch at least one electric bike next year. The company showcased electric bike concepts last year and is expected to reveal the production version on August 15, 2024. The first model to launch is anticipated to be the ‘Roadster,’ which will also utilize the in-house batteries, allowing Ola to price the bikes competitively.