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

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Hero MotoCorp, the world’s largest two-wheeler manufacturer, has launched its XPulse 200 4V and XPulse 200 Pro motorcycles in the United Kingdom, expanding its international adventure motorcycle line-up.

The rollout represents the next phase of the manufacturer's European expansion, following its initial entry into the UK market last year through a distribution partnership with MotoGB.

The motorcycles were introduced at the Inch Perfect Trials in the Ribble Valley, marking the brand's latest European expansion following recent market entries in Italy and Spain. Distribution and aftersales service will be managed via MotoGB’s network of 36 sales and service outlets across the UK, with all models backed by a two-year warranty.

Both models are powered by a 199.6cc, four-stroke, four-valve, single-cylinder, oil-cooled engine paired with a five-speed constant-mesh transmission. The engine produces 18.9 BHP at 8,500 RPM and 17.35 Nm of torque at 6,500 RPM. The motorcycles feature an LCD instrument cluster with Bluetooth connectivity and turn-by-turn navigation, a Class-D LED projector headlamp and three anti-lock braking system (ABS) modes (Road, Off-Road and Rally).

Harshavardhan Chitale, CEO, Hero MotoCorp, said, “The launch of the XPulse 200 series marks an important step in strengthening Hero MotoCorp’s global adventure motorcycling portfolio in the UK. The XPulse has created a strong identity globally as an accessible yet highly capable adventure motorcycle that appeals to both - everyday riders and off-road enthusiasts. With its proven performance, versatility and adventure-focused DNA, we are confident that the XPulse range will strongly resonate with the riders. As we continue to expand across international markets, our focus remains on bringing globally benchmarked products and building deeper customer engagement worldwide.”

The XPulse 200 Pro includes hardware adaptations for off-road use, featuring handlebar risers to assist with standing positions and an extended gear shift lever designed to accommodate off-road riding boots. Both variants are equipped with protective bash plates, handguards, and a rear luggage plate with integrated cargo hooks as standard equipment.

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Chennai-headquartered two-wheeler and three-wheeler major TVS Motor Company, a part of TVS Group, has appointed Ravindran Shanmugam as an independent director for a 5-year term, effective 13 May 2026, pending shareholder approval.

Shanmugam is a technology entrepreneur and business leader with experience in digital transformation and AI platforms. He currently serves as the Co-Founder and Executive Chairman of Mablle, an AI-based interior design platform in Singapore. He has previously worked as a management consultant at McKinsey & Company and is an alumnus of the University of Oxford.

Sudarshan Venu, Chairman, TVS Motor Company, said, “Ravindran Shanmugam brings deep expertise in digital & consumer-focused businesses, and AI-led transformation, along with strong experience in strategy, entrepreneurship and scaling businesses across global markets. His perspectives will add valuable depth to the TVS Motor board as we continue to strengthen our future-ready growth ambitions. We are delighted to welcome him and look forward to benefiting from his insights and guidance.”

Ravindran Shanmugam, said, “I am honoured to join the board of TVS Motor Company, an institution with a strong legacy of engineering excellence, customer trust and global ambition. Mobility is being reshaped by technology, digital ecosystems, AI and evolving consumer expectations, and TVS Motor is well positioned to play a meaningful role in this transformation. I look forward to contributing to the board’s deliberations and supporting the company’s long-term growth journey with perspectives from technology-led transformation, platform businesses and consumer-focused innovation.”

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Chennai-headquartered two-wheeler and three-wheeler major TVS Motor Company has reported revenue of INR 472.70 billion for FY2025-26, up 30 percent YoY, as compared to INR 362.51 billion last year.

The company reported its operating EBITDA for the year stood at 12.9 percent, while operating profit before tax reached INR 49.75 billion, up 40 percent YoY.

For FY2026, combined sales of two and three-wheelers increased by 24 percent to 5.88 million units. Within this total, motorcycle sales rose by 24 percent to 2.71 million units, while scooter sales grew by 27 percent to 2.41 million units.

Three-wheeler sales reached 219,000 units, an increase of 63 percent, while electric vehicle sales grew by 33 percent to 371,000 units, bringing the total customer base for this segment to more than 900,000.

For Q4 FY2026, the company recorded revenue of INR 128.08 billion, the operating EBITDA margin for the quarter was 13.1 percent. Normalised revenue for the quarter grew by 36 percent when excluding benefits from government incentive schemes recorded in the prior year.

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Honda Motorcycle & Scooter India (HMSI), one of the leading two-wheeler manufacturers, has officially launched the NX500 E-Clutch at a price of INR 743,900 (ex-showroom, Delhi).

The new variant introduces Honda's globally proven clutch automation technology to the mid-size adventure touring segment, priced approximately INR 111,000 higher than the standard manual version.

The E-Clutch system manages clutch engagement and disengagement during starting, gear shifting and stopping, effectively eliminating the need for the rider to pull the clutch lever. However, the system allows for manual override at any time and the motorcycle retains a traditional clutch lever for riders who prefer hands-on control.

The NX500 E-Clutch features a 471cc liquid-cooled, parallel-twin engine producing 47 bhp and 43 Nm of torque. It gets a 6-speed gearbox with the automated E-Clutch system; the mechanism adds only 3 kg to the bike's kerb weight (now 199 kg). The motorcycle gets steel diamond frame with Showa 41mm SFF-BP USD front forks and a preload-adjustable rear monoshock.

In terms of stopping, it gets dual 296mm front discs and a 240mm rear disc with dual-channel ABS as standard.  

The NX500 features a 5-inch full-colour TFT display with Honda RoadSync (navigation, calls, music), Honda Selectable Torque Control (HSTC) and all-LED lighting.

Tsutsu Otani,  President & CEO, Honda Motorcycle & Scooter India, said, “The Honda NX500 equipped with E Clutch technology enhances comfort and control across both urban and touring environments in India, by reducing rider fatigue, while retaining the engaging, hands-on riding experience that defines Honda motorcycles.”

The NX500 E-Clutch is available in two colour options – Mat Gunpowder Black Metallic and Pearl Horizon White.

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