Electric mobility firm, Ola Electric has decided to enter the commercial vehicle space and by doing so will take on automotive giants, Tata Motors and Mahindra & Mahindra.
Mahindra & Mahindra is currently the dominant player in the three-wheel electric cargo market with its Treo Zor.
Earlier in May, Tata Motors announced the launch of the Tata Ace EV, the deliveries of which is expected to start shortly.
As for Ola Electric, a senior official confirmed that they will come out with their introductory products, in both three-wheeler and four-wheeler eSCVs, by next year.
The eSCV category comprises of vehicles whose gross weight does not exceed beyond 3.5-tonnes.
They are generally used for last-mile delivery by e-commerce players, and Ola dubs that the category between 1-3 tonne vehicles is where the sweet spot of eSCV lies. eSCV are also eligible for subsidies under the Government’s FAME 2 scheme.
With the launch of Ola Electric’s e-3W, the brand will also lock horns with the likes of Bajaj Auto, Mahindra&Mahindra, and Greaves Cotton. Later on, the brand will also foray into the segment of Light Commercial Vehicles.
Ola Electric, its decision to enter the three-wheeler segment was partly prompted by its plans to go for a massive electrification drive in its ride-sharing electrification drive. The company is already a big player in the three-wheeler ride-sharing business and it plans to build the electric auto-rickshaws according to the requirements of Ola drivers.
On the other hand, the Tata Ace EV has been on extended trial runs with its fleet owners. The manufacturer is also developing the charging ecosystem on their premises.
Tata Motors has already signed MOUs; with Amazon, Flipkart and Big Basket to deliver 39,000 vehicles in Delhi, Pune, Mumbai, and other locations.
The Ola senior official further stated how there is a substantial market in the eSCVs and eLCVs, that offer attractive margins. Several of the ICE products available are unattractive, as per the official.
Ola Electric will be re-engineering the product and coming up with a design-balancing cost with value.