As a wise person once said, someone’s loss is another’s gain. With fuel prices across India touching Rs. 100 a litre or close, consumers are now considering Electric Vehicles (EV) seriously. The category is now also abuzz with the market’s newest darling — Ola, ride-sharing app, having made its debut into the space with its much-talked-about electric bikes.

Anup Jain, managing partner at Orios Venture Partners, the company which has invested in a battery-as-a-service EV startup, says, “India has never seen fuel prices at Rs. 100 until now. It has sounded the death knell for fossil fuel-driven personal vehicles where consumers are extremely price-sensitive. Most two-wheeler brands have run marketing campaigns over the last 50 years based on fuel efficiency alone. Thus, Ola’s entry, and electric bikes, will push consumers to replace and buy new two-wheelers. The pre-booking rush itself is a clear indication.”

Creating a buzz
Vikas Gupta, founder-CEO, E-Ashwa Automotive, agrees that Ola is going to be their biggest competitor. However, as an industry player, they appreciate the momentum spurred by the company in the EV space.

“The social media buzz with top business people commenting on Ola’s new bikes has helped the industry. Other factors like the continuous rise in fuel prices and a shift towards personal mobility over public transport due to the pandemic have also contributed,” Gupta feels. He believes it’s still early days to discuss the brand’s future, though; plans for its sales, service and distribution networks are still undisclosed by the company.

Ather Energy’s CBO Ravneet Phokela believes the current sentiment is “great” for EV-focussed OEMs in the market. “It’s then that the consumer awareness increases and the EV ecosystem will also evolve to cater to the customer needs,” he says. “We created the high-performance scooter category with the Ather 450 in 2017 and established the product market fit for this price point,” he points out. Phokela also mentions the demand for electric scooters has risen thanks to the recent FAME II revision, additional subsidies by the state governments and new launches, with consumer enquiries going up by 3x minimum, and sales going up by 2x.

Expert views
Ola is the first major entrant into India’s EV market without an automotive manufacturing background. Samit Sinha, managing partner, Alchemist Brand Consulting, says, “Given India’s market size in two-wheelers —– the largest in the world for the conventional petrol-driven bikes and scooters, which account for four out of every five vehicles sold in India — means a successful foray by Ola into the electric two-wheeler segment is likely to be a real game-changer for the country.”

Sinha also believes that this can signal the rapid adoption of two-wheeled EVs in India, creating a revolution perhaps similar to the one that took place in the market for motorcycles in the 1980s with the availability of new-gen technologies thanks to Yamaha, Honda, Kawasaki and Suzuki to Indian manufacturers. However, brand engagement consultant Gaurav Gulati feels that despite the government’s active support, the e-bike and two-wheeler segments have progressed at a snail’s pace.

Marketing ways
Jeetender Sharma, MD and founder, Okinawa Autotech, shares that their marketing strategy is based on spreading awareness about EVs and their easy adoption. He explains, “We have worked extensively on the pricing strategy to lead the market. We have a disruptive range of stylised, innovative products at minimal cost,” he says. Sharma also thinks companies should educate people about EVs as futuristic and sustainable.

E-Ashwa Automotive’s marketing strategy is simple – creating something big that is monetarily reachable for the masses. “We also offer dealerships at an Rs. 6,00,000 investment where dealers can earn up to Rs. 60,000 per month. Our company offers dealers rental and manpower support for six months through year one,” Gupta says.

“Our pricing range makes our products available from tier-1 to tier-3,” Sharma says about Okinawa’s strategy to make its bikes available across the Indian market. “Our strategy is around the masses and we have no inclination to compete with elite class manufacturers,” he says.

Sinha views Ola’s gambit as incredibly bold. A quick look at the size of the Indian market makes Gulati certain that it’s the best time for Ola to be entering the electric bike sphere. For now, it’s all eyes on the category.

The company has also announced the appointment of former Amazon India and Reliance Trends executive Arun Sirdeshmukh as Chief Executive Officer of Ola Cars…

Aggarwal also said that the industry needs to make investments to leverage the ecosystem and turn India into an EV hub…