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According to VAHAN data, Ola Electric’s market share reached 30% by the end of January, up from 19% in December.
With today’s gains, the stock also surpassed its IPO price of Rs 76. However, as of Thursday’s close, it remained down 57.5% from its post-listing high of Rs 157.5.
The Bengaluru-based electric vehicle company also launched the Ola Electric Gen 3 today, which is expected to bring around 20% margin savings. Speaking during the Q2 call with analysts, CEO Bhavish Aggarwal mentioned that the savings would begin in January, with further improvements expected each quarter as Gen 3 technologies are implemented.
“In terms of gross margin, we expect about a 20-point improvement as Gen 3 plays out over the next 12 months, step by step,” Aggarwal noted.
The Gen 3 upgrade includes a re-architecture of the motor platform to reduce costs and increase power density. The company is also working on simplifying the electronics platform by reducing the number of ECUs to a smaller, largely single-board design. Additionally, some structural changes in the battery will reduce plastic layers, further driving down costs.Aggarwal also highlighted cost-reducing changes in the vehicle’s fabrication process, which are expected to lower manufacturing expenses.Meanwhile, earlier this week, HSBC downgraded Ola Electric Mobility to a “Hold” rating from “Buy,” citing ongoing volume disappointments and growing competition in the electric two-wheeler market. The brokerage also lowered its target price for the stock to Rs 70 from Rs 100.
“Since the IPO, Ola Electric has consistently disappointed on volumes, largely due to quality and service issues,” HSBC said in a note. While the company has addressed service issues and is set to launch an EV motorcycle soon, competition has been aggressive in catching up, the brokerage noted.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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