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OLA EV 2 wheelers- The Next JIO of Indian Market???

 OLA Founder Bhavish Aggarwal has announced the next Big Thing of Indian 2 wheeler market. Or we can say that the next Big thing of Global EV Market!!! Manufacturing plant of 500 acres in Outer Suburbs of Bangalore is on the lines of Tesla's Giga Factory in Nevada(US).

OLA Future Factory

The Plan is to make 10 Million(1 Crore) Electric Scooters per year by 2022 which is going to have a big Impact by the scale of production on the Cost of Electric Scooters in the Indian and Global Market. The biggest factor will be making a Scooter every 2 seconds. The extremely Low cost of Production due to such a low Takt Time may be a target to become the Next JIO of Indian Scooter market.

OLA Electric Scooter

Below Factors will make it a lot cheaper than the other scoooters:

1) The fact that Honda Activa production for the FY2020 was 26 Lac units shows that Ola EV plan is to produce 4 times the highest Scooter seller in India. This can lead to Cost of Production dropping to almost half  the cost of the Top selling scooter.

2) GST levied  on the scooters running on fuel run upto 28%. While the Electric scooters will be sold at 5% GST. Therefore the on Road price of an Electric scooter with same production rate would be approx Rs 10000/- cheaper due to GST. However a Scooter with higher production rate and lower cost will be even more cheaper.

3) Subsidy by Governments: The subsidy applied by the State and centre governments may go upto 25% for Electric Scooters which will make it cheaper by a big Margin

4) Scrappage policy: The new Scrappage policy being brought by the Government will be lead to benefits of about 5% on new Vehicles. This could go higher for the Electric Scooters when the actual policy rolls out.

5) Roll Out schemes by Ola Electric may be strategic with heavy discounts for initial launch which could land a punching blow in the market and change its scenario forever as in case of Reliance Jio.

So be ready for a transition in the market of 2 wheelers by June as Ola Electric plans to make the first phase of the plant by then.

What price do you expect. We would expect something between 25-30K on Road Price to take the market by storm.

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