Ola Electric shares jump 7%: What's driving the rally?
What's the story
Ola Electric's shares jumped over 7% in early trade today, following an ambitious growth strategy unveiled by founder and chairman Bhavish Aggarwal at the company's annual Sankalp event. The stock was trading at ₹43.98, up nearly 7% from its previous close. The surge is largely fueled by renewed investor optimism over Ola's aggressive electric vehicle (EV) targets and gigafactory plans.
Growth strategy
Aggressive EV targets set for 2-wheeler market
Aggarwal revealed that Ola Electric is aiming for a 25-30% share of India's two-wheeler EV market. The target will be achieved through vertical integration and new product launches. "Our target market share for two-wheeler EVs is about 25-30% with very high margins," Aggarwal told Moneycontrol. He also emphasized that despite a challenging transition phase, Ola's "mojo is still there."
Market strategy
Transitioning to new products and distribution scale-up
In the last six months, Ola Electric has discontinued its Gen 2 scooters, increased supplies of Gen 3 models, and launched its first electric bike. "It's been two quarters of transition. Along with product transition, we've had a distribution scale-up," Aggarwal said. He added that as the festive season approaches, market share volumes are expected to start increasing.
Market performance
Market share declines over past year
Despite the optimistic outlook, it's worth noting that Ola Electric's market share has fallen to 17.35% in July 2025 from 38.83% a year ago. Registrations have also declined from 41,802 units to 17,848 units during this period. Aggarwal stressed that profitability in EVs goes beyond scale and requires vertical integration and technology development as key components for success.
Manufacturing plans
Gigafactory in focus for lithium-ion cell production
Ola Electric is betting big on its gigafactory in Tamil Nadu's Krishnagiri to manufacture lithium-ion cells for its vehicles. The facility will also support drones, robotics, and grid storage solutions. The company has integrated its indigenously developed 4680 battery cell into the S1 Pro Plus scooter and Roadster X Plus motorcycle with deliveries starting this Navaratri on September 22.