The rising impact of carbon footprint and deterioration of air quality have been major concerns across the globe. The state and central governments have introduced various subsidies to reduce vehicle emissions. As sustainability goes mainstream, automobile companies are investing heavily in electric vehicles that are environmentally friendly. Multinational ride-sharing company Ola has recently launched  its ‘e-scooter’, and this would be a welcome move. Ola has strategised the right product, the right promotion – all at the right time. Digital access, big boot space, keyless, fast charging… all go into the right product, the Ola e-scooter! Tweet by tweet, Ola has generated excitement from ground zero till launch. Why will customers buy Ola e-scooter? How it is beneficial to the environment? Two variants, 10 colours, all contributing to the right promotional vibes! Its timing is also perfect – people have become more conscious about the environment during the pandemic.

But are these points enough? Ola’s long-term success will depend on numerous other factors such as the right price, the right supply chain configuration and formulating the right strategy to reach the target audience.

What’s the right price?

India is a price-sensitive market. The key challenge in front of Ola is to provide a new experience at an affordable cost. The majority of the two-wheeler population falls into the middle-income group segment. This segment of consumers primarily looks for a fair economical price while buying any new product. In 2021, two-wheelers sales reached  151.19 lakh units (IBEF, 2021). Scooters are available in India at a price range of INR 40,000 to INR 130,000. Ola S1 and S1 pro are priced at INR 99,999* and INR 129,999*, respectively. (*Prices may vary according to region and subsidies). The average price of a scooter today for the middle-class segment is between INR 50,000 and INR 70,000.

What’s the right Supply Chain Configuration?

The company must get its supply chain intricacies right as this important driver increases the cost. Ola is going to deliver directly to the customer. The direct model benefits Ola in the short run in reducing the advertising and overhead costs, eliminating dealership costs and working closely with consumers. Consumers also benefit from the closeness and individual care they receive from direct sales. On the manufacturing side, the direct model cuts out intermediaries, and they can follow lean inventory and save inventory costs. But the company should look holistically and balance inventory costs along with the transportation costs in the long run. Transportation costs (especially outbound costs) will be more in the direct model. Ola must learn from its previous experiences in this regard and focus on the after-sales service and support space. It’s easy to persuade the customers to buy, but the experience thereafter needs to be good too.

What’s the right strategy to reach the customers?

Understanding the mobility landscape and focusing on the right strategy to reach the target audience is one of the most important aspects of the business continuum.

The changing mobility landscape

The automobile industry is evolving fast and technology has brought a remarkable shift in manufacturing, assembling products, processes and the way we drive thanks to Industry 4.0 revolution – Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning and Robotics applications. The technology revolution in the global automotive sector is known as the CASE (Connectivity, Autonomy, Shared mobility and Electrification) technologies (Deloitte, 2020). Staying relevant and up-to-date on contemporary technological innovations is key for the automobile industry.

With every passing day, new challenges and opportunities emerge.

1. Supply chain disruptions: The extended Covid-19 pandemic unequivocally affected the Indian automobile industry which was just surviving with a reverse gear in demand. During March-July 2021, the industry witnessed colossal interruptions due to semi-conductor chip shortages.

2. The transition from BSIV to BSVI emission norms: This is one of the pressing challenges that the automobile industry is facing. With changes in government regulations, it becomes difficult to sell old BSIV vehicles. This has led to a rise in the inventory of BSIV vehicles.

3. Non-Banking Finance Corporation (NBFC) Liquidity Crisis: NBFCs have been a major strength of the automobile industry as they are the key lenders for financing automobile purchases in semi-urban and remote villages where credit accessibility from the banks is normally difficult. NBFC’s liquidity crisis severely crushed many sectors, and the automobile industry is one of the major ones that it took a high toll on.

4. Urbanisation: Urbanisation poses another challenge for the automobile industry. Availability of other car rentals and non-availability of parking space in the metropolitan cities has made individuals defer their vehicle purchasing decisions.

5. Rising fuel cost: Change in GST-related tax structure, volatility in fuel prices, increased interest rates and insurance premium resulted in a steep sales drop of two-wheelers and four-wheelers. The Insurance Regulatory and Development Authority (IRDA) revised its insurance standards in September 2018, which resulted in increased insurance costs for two-wheelers and passenger vehicles (PV).

6. Growing demand for alternatives: Due to Covid-19, people may switch to personal mobility instead of shared mobility as a safety measure. Service-based models such as rental cars, pay-as-you-go models may kick-off.

Focus on the right positioning strategy

Arriving at the right positioning strategy involves recognising users’ distress areas and addressing them, in addition to providing them with key benefits.

Identifying the appropriate consumer segment is critical. Analysis of the current micro, macro-environment, market conditions, competition and economic swings is important, but the focus should be more on categorising consumers who have a high probability of purchasing e-vehicles. This entails understanding the consumer’s lifestyles, values, attitudes and buying behaviours. For instance, studying different generations provides a clear understanding of consumption behaviours during a particular period and how it differs across other age groups. It helps to appreciate how diverse formative habits, experiences and lifestyles relate to the ageing lifeycle. Usually, a generation refers to groups of people born over a span of 15 to 20 years, such as the Millennial generation. There is no definite start and end date for Millennials. Those who were born after 1980, i.e. between 1981 and 1996, are widely considered as Millennials (Pew Research Centre, 2019). The rise in the income level of Millennials and a higher variety of choices changed the mobility landscape. These particular segments dominate in terms of size as a result of a growing middle-upper class and a young populace. The evolution of the technology revolution also changed the way Millennials drive and their preference for mobility. Millennials are more conscious of being environmentally friendly; they prefer walking or using public transport due to affordability as compared to huge purchase and maintenance cost in owning a vehicle. Unlike the elder cohorts, many of the Millennials do not want to own a car; instead, they prefer scooters and shared mobility. (Deloitte,2019)

Recognising consumers’ distress points

Spotting the consumers’ pain points early will pave way for smooth penetration in the long term. For example, it takes two minutes to fill the fuel, but what about charging? Unlike conventional two-wheelers, consumers need to spend additional time for charging. Though consumers can charge in-home, Ola is also planning to put up hyper charging stations across the country to reduce the anxiety of riders.AI and customisable digital screens make consumers remain always connected, but there’s a flip side to it too. These digital screens and music apps will distract the riders during rides. Limited (two) variants, charging time, battery replacement cost anxiety and technical issues in sharing apps would also pose as shortcomings in the current options. Identifying consumers’ distress points with the current options may reveal opportunities on how to position the Ola e-scooters. Based on that, the company can create a tailored user content that will result in a greater possibility of converting them as brand evangelists for Ola e-scooters so that they will share their wonderful experiences with the public at large.

The Ola e-scooter is a potential disruptor in the mobility space. While there is a lot of excitement and eagerness to embrace the product, the organisation has to put in place a sound strategy in order for us to enjoy the ride!

References:

1. https://www.ibef.org/industry/india-automobiles.aspx assessed on 15^th August 2021

2.https://www2.deloitte.com/us/en/insights/industry/automotive/industry-4-0-future-of-automotive-industry.html

3.https://www.pewresearch.org/fact-tank/2019/01/17/where-millennials-end-and-generation-z-begins/

4.https://www2.deloitte.com/content/dam/Deloitte/au/Documents/consumer-industrial-products/deloitte-au-cip-global-automotive-consumer-study-2019-110221.pdf

TVS Motor Company, a leading manufacturer of two-wheelers and three-wheelers, has introduced the updated TVS Apache RR310, its flagship offering in the premium sports motorcycle category.

The 2025 edition is now compliant to the OBD-2B norms with prices starting at INR 277,999 (ex-showroom India). As part of 20th anniversary commemoration of the TVS Apache series, the TVS Apache RR 310 now gets segment-first Sequential TSL and Cornering Drag Torque Control (RT-DSC). It also features Launch Control (RT-DSC), Gen-2 Race Computer with Multi Language Support and 8 Spoke Alloy Wheels.

Available in two variants with three BTO customisation options, the Apache RR 310 continues to build upon TVS Racing’s pedigree.

The Apache RR 310 is powered by a refined reverse-inclined DOHC engine, which produces 38 PS at 9,800 rpm and a peak torque of 29 Nm at 7,900 rpm.

Vimal Sumbly, Head Business – Premium, TVS Motor Company, said, "Since its debut in 2017, the TVS Apache RR 310 has emerged as a formidable force in the super-premium sport motorcycle segment, redefining performance benchmarks through its race-bred DNA. Rooted in over 43 years of TVS Racing heritage, it embodies our relentless pursuit of innovation and excellence. The latest evolution of the RR 310 integrates cutting-edge technologies such as segment-first: sequential turn signal lamps (TSL), Launch Control and Drag Torque Control – reinforcing our leadership in rider-focused advancements. The new BTO Race Replica colourway pays tribute to our record-breaking TVS Asia One Make Championship legacy. With this latest avatar, the Apache RR 310 not only pushes the boundaries of track performance but also elevates everyday rideability – delivering a thrilling yet refined experience that appeals to both spirited racers and discerning enthusiasts.”

Bengaluru-headquartered electric vehicle company Ultraviolette Automotive (Ultraviolette) has announced a latest strategic alliance with MotoMondo, as its official importer and distributor for the United Kingdom and the Benelux region, which includes Belgium, the Netherlands and Luxembourg.

This announcement is part of Ultravilotte’s ambition to expand its presence in the global market, especially the European region. As part of the understanding, the company will introduce the F77 MACH 2 Recon in the region for an introductory price of GBP 8,499 till 30 June 2025, post which the price will increase to GBP 9,399.

Narayan Subramaniam, CEO & Co-Founder, Ultraviolette, said“We are thrilled to partner with MotoMondo to bring the Ultraviolette experience to the United Kingdom and Benelux region. This partnership represents a significant milestone in our global journey as we expand the Ultraviolette brand beyond India into some of the world's most mature and discerning motorcycling markets. MotoMondo’s proven expertise in establishing and growing premium motorcycle brands across Europe makes them the perfect partner to represent Ultraviolette in these key regions. Their deep understanding of the market, combined with a passion for innovation and motorcycling culture, ensures that the Ultraviolette ecosystem-from product experience to aftersales support, will be world-class from day one. This is just the beginning, and we’re incredibly excited about the road ahead.”

Jan Ykema, Managing Director, MotoMondo, added, “We are proud to bring Ultraviolette, the most advanced electric motorcycle brand of the world, to the United Kingdom and Benelux region. Their technology is unprecedented, and we have only just seen the beginning! Ultraviolette will disrupt the current motorcycle market by offering a real alternative for all combustion engines.”

Honda Motorcycle & Scooter India (HMSI), one of the country's leading two-wheeler manufacturers, has launched the OBD2B-compliant Dio 125 scooter at INR 96,749 (ex-showroom Pune).

The new Dio 125 gets refreshed colour scheme and graphics, 4.2-inch TFT display with mileage indicator, trip meter, eco indicator and range (distance to empty). Furthermore, it is compatible with Honda RoadSync app for providing navigation and call/message alerts, Smart key and a USB Type-C charging port.

Mechanically, the Dio 125 remains unchanged and continues to be powered by a 123.92cc, single-cylinder PGM-Fi engine, which produces 6.11 kW of power and 10.5 Nm of torque.

It will be available in two variants, DLX and H-Smart, with five colour options on sale.

Tsutsumu Otani, Managing Director, President & CEO, Honda Motorcycle & Scooter India, said, “For over 21 years, the Dio has been an iconic name in the Indian market, standing as a symbol of style, performance, and trust. It has consistently been the first choice for customers looking for a trendy and reliable moto-scooter. With the launch of the new OBD2B Dio 125, we are excited to take forward its iconic legacy, keeping the core concept of moto-scooter intact, with added value and excitement for our customers.”

Yogesh Mathur, Director, Sales & Marketing, Honda Motorcycle & Scooter India, said, “We are ecstatic to introduce the new OBD2B version of Dio 125 – a scooter that has resonated with young India for years. With its refreshed graphics, advanced TFT display, and enhanced connectivity features, the new Dio 125 is designed to meet the evolving aspirations of today’s customers. True to its tagline, ‘Dio Wanna Have Fun?’, this moto scooter has always been a popular choice among India's younger generation, and this update will further strengthen its position in the segment.”

Suzuki Motorcycle India (SMIPL), the two-wheeler subsidiary of Suzuki Motor Corporation, Japan has partnered Flipkart to introduce digital buying experience for its customers.

From 15 April 2025, potential customers in eight Indian states – Karnataka, Tamil Nadu, Gujarat, Maharashtra, Andhra Pradesh, Odisha, Meghalaya and Mizoram will be able to book Suzuki scooters and motorcycles on Flipkart. To begin with customers will have options to purchase the Avenis scooter and GIXXER, GIXXER SF, GIXXER 250, GIXXER SF 250 and V-Strom SX motorcycles online.

Deepak Mutreja, Vice-President, Sales & Marketing, Suzuki Motorcycle India, said, “As more customers now prefer digital platforms for their purchases, we are committed to meeting them where they are. By associating with Flipkart, we are leveraging the growing digital ecosystem to offer customers a convenient and trusted platform to explore and buy Suzuki two-wheelers. We believe this move will further strengthen our reach and customer engagement in the Indian market.”

Sujith S Agashe, Senior Director, Electronics at Flipkart, said, “At Flipkart, we are constantly working to enhance our customer journey offering greater convenience and choice, backed by Flipkart’s trusted digital ecosystem. Our partnership with Suzuki Motorcycle India is a testament to this commitment, as we enable customers across the country to explore and book premium two-wheelers from the comfort of their homes. We are excited to bring greater convenience and choice to today’s digitally savvy consumers.”