Ola IPO, known for its electric scooters and bikes, has recently decided to put its car project on hold, leaving the dream of an OLA electric car unfulfilled for now. This move indicates a shift in the company’s strategic plans. Initially, OLA had formed a team of 100 people for this car project, but it has now been paused.

In 2022, OLA’s CEO Bhavish Aggarwal planned to launch an all-glass roof electric sports car within two years that could accelerate from 0 to 100 kilometers per hour (km/h) in just four seconds. He reiterated these plans in an interview with Forbes in September 2023. However, the project is now on hold. Let’s understand why and what the new strategy is.

What are the reasons for pausing the car project?

OLA has postponed its plans to launch an electric car due to two main reasons – first, the Indian company OLA Electric is preparing for an IPO, and second, the company wants to focus on its e-scooter business.

Focusing on E-scooters

According to company sources, OLA has suspended its electric car project to increase its scooter and bike production. OLA’s CEO Bhavish Aggarwal said, “Our main goal is to make electric mobility accessible to the mass market. Therefore, we will focus on increasing our scooter and bike production for now. This year, electric scooters have become quite popular in India, and the infrastructure is rapidly developing.” As of June this year, OLA has sold nearly 483,000 electric scooters, whereas only 45,000 electric cars have been traded in the world’s third-largest auto market during this period.

Preparing for the Ola IPO

India’s OLA Electric, preparing for its IPO, has postponed its plans to launch an electric car. According to two sources, this car project has been put on hold before the IPO, which is scheduled for August 2, 2024, as the company plans to raise approximately $660 million through this IPO.

When Will the Ola Car Project Resume?

OLA has postponed its car project for at least two years. During this time, the company’s main focus will be on selling two-wheelers and producing batteries. No definite date has been set for the project’s restart. However, the company plans to resume this project only after advancing its existing e-scooter business.

Impact on Customers

This decision could positively impact customers, as OLA will now be able to spend more resources and time improving its scooter and bike production. This will provide customers with better quality scooters and bikes, and their problems will be resolved more quickly.

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