Ola E-Scooters – Will The Ride Be Enjoyable?
- By Dr M Rammyaa and Dr K Rajeshwari
- September 02, 2021
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 15th August 2021
3.https://www.pewresearch.org/fact-tank/2019/01/17/where-millennials-end-and-generation-z-begins/
TVS Motor Company Reports Strong Q1 With 20% Revenue Growth
- By MT Bureau
- August 01, 2025
Chennai-headquartered two-wheeler and three-wheeler major TVS Motor Company has announced its financial results for Q1 FY2026, with a significant 20 percent increase in revenue for the first quarter.
The company's revenue climbed to INR 100.81 billion, up from INR 83.76 billion in the same period last year.
The company's profitability also saw a major boost. Operating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 32 percent to INR 12.63 billion, with the operating margin improving to 12.5 percent from 11.5 percent. This led to a 35 percent increase in Profit After Tax (PAT) to INR 7.79 billion.
During the period, TVS Motor registered its highest ever quarterly sales, with overall two- and three-wheeler sales growing by 17 percent to 1.27 million units. This includes motorcycles sales at 621,000 units, up 21 percent, scooters at 499,000 units, up 19 percent, three-wheelers sales at 45,000 units, up 46 percent and electric scooters at 70,000 units, up 35 percent YoY respectively.
Ather launches 450S variant with 161km range at INR 146,000
- By MT Bureau
- July 31, 2025
Bengaluru-based electric two-wheeler manufacturer Ather Energy has launched a new variant of its 450S electric scooter, featuring an upgraded 3.7 kWh battery pack that delivers an IDC range of 161km. Priced at INR 145,999 (ex-showroom, Bengaluru), the new model offers an extended range while maintaining the performance DNA of the 450 series.
The variant is positioned to bridge the gap between the entry-level 450S 2.9 kWh and the higher-end 450X. It features the same 5.4 kW motor producing 22 Nm of torque, a claimed top speed of 90 kmph, and zero to 40 kmph acceleration in 3.9 seconds.
Ravneet Phokela, Chief Business Officer, Ather Energy, said, "The 450 series has always set the bar for performance, technology, and reliability in the Indian electric scooter market. With the launch of the 450S featuring a 3.7 kWh battery pack and an IDC range of 161km, we're bringing the extended range previously exclusive to the 450X. The new 450S variant is specifically designed for riders who prioritise the sporty appeal and long-range capability of the 450 series over the advanced software features of the 450X. With an IDC range of 161 kms offered by the new 450S, riders can now confidently plan longer journeys and still experience the thrilling performance the 450 series is renowned for, all at a more accessible price."
The new 450S retains the sharp styling and build quality of the 450 range, while offering four riding modes – Smart Eco, Eco, Ride and Sport. It also comes equipped with a 7-inch DeepView Display, Bluetooth connectivity, turn-by-turn navigation, AutoHold, Fall Safe, OTA updates and access to the Ather Grid fast-charging network.
Bookings are now open, with deliveries set to begin from August 2025. Ex-showroom prices for the new variant are INR 148,047 in Delhi, INR 148,258 in Mumbai, INR 145,999 in Bengaluru and INR 147,312 in Chennai.
The scooter is covered under Ather’s 'Eight70' warranty programme, which offers 8 years or 80,000 km of coverage, guaranteeing 70 percent battery health during the period.
Eicher Motors reports strong Q1 performance, Royal Enfield and VECV lead growth
- By MT Bureau
- July 31, 2025
Eicher Motors (EML) has reported its highest-ever Q1 revenue in FY2026, reaching INR 50.42 billion, up 14.8 percent YoY, from INR 43.93 billion last year.
The EBITDA grew by 3.2 percent to INR 12.03 billion, while Profit After Tax (PAT) stood at INR 12.05 billion, up 9.4 percent from INR 11.01 billion in Q1 FY2024-25.
During the quarter, Royal Enfield sold 261,326 motorcycles, which was 14.7 percent higher as compared to 227,736 units sold in the corresponding period last year.
VE Commercial Vehicles (VECV) posted INR 56.71 billion in revenue, up 11.9 percent from INR 50.70 billion, while EBITDA grew by 32.6 percent to INR 5.11 billion. The company sold 21,610 CVs in Q1, compared to 19,702 in the previous year. VECV’s revenue and EBITDA are not included in Eicher Motors’ consolidated financials, and its profit contribution is reflected as a single line in EML’s consolidated PAT.
B Govindarajan, MD, Eicher Motors, and CEO, Royal Enfiled, said, “At Eicher Motors, we’ve had a solid start to the year, with encouraging growth across both Royal Enfield and VECV. We continue to build consistent momentum in volumes, profitability and the strength of our overall portfolio. At Royal Enfield, we have sustained our growth momentum in the first quarter, anchored by our continued focus on product innovation, immersive riding experiences and a deeper expression of pure motorcycling. The refreshed Hunter 350 continues to be a key marker of growth for us, both in terms of volumes and community engagement. Moving ahead on our global ambition, we further strengthened our reach in the SAARC region and expanded our portfolio in Nepal with the locally assembled Classic 350. With a refreshed pipeline of motorcycles and a growing ecosystem of curated rides and culture-first experiences, we are shaping a vibrant and inclusive motorcycling movement. VECV, too, has delivered consistent growth, anchored in a strong product portfolio and a sharp understanding of India’s evolving commercial mobility needs. Our continued investment in sustainable, efficient transport solutions ensures we are well-positioned for the future. As we move forward, our commitment to long-term value creation remains strong – through customer-centric innovation, global ambition, and meaningful brand experiences at every level.”
Vinod Aggarwal, MD and CEO, VECV, and Vice Chairman, Eicher Motors, said, “CV delivered its best‑ever first quarter with 21,610 units in Q1 FY’26 (up 9.7 percent year‑on‑year) and broadened its footprint in a largely flat market. Overall market share improved to 18.7 percent (vs 17.3 percent last year), led by continued leadership in LMD trucks (34.5 percent share) and a strong showing in Buses, where Total Bus volumes grew 14.8 percent and market share rose to 21.5 percent. Exports grew by 20.5 percent over last year. Deliveries of all electric Eicher Pro X in SCV segment (2.0–3.5T) continue to gather momentum. Heavy‑Duty volumes were marginally lower reflecting a lower total market despite market share gains. Our connected vehicle solution “My Eicher” now connects 150,000 customers representing 350,000 vehicles. VECV reported strong revenue growth and expansion in profit margins linked to better volumes, pricing and cost discipline. PAT was lower as compared to previous year primarily due to one off impact in Q1 FY’25 linked to deferred tax reversal.”
VECV also reported improved market share in LMD trucks and buses, and growth in electric vehicle deliveries and exports.
TVS Ntorq 125 Super Soldier Edition Launched At INR 98,117
- By MT Bureau
- July 25, 2025
Chennai-based two-wheeler and three-wheeler major TVS Motor Company has launched the TVS Ntorq 125 Super Soldier Edition in the Marvel Avengers Super Squad series at INR 98,117 (ex-showroom Delhi).
The TVS Ntorq Super Soldier Edition builds on the company’s successful collaboration with Marvel, and features a striking camo-inspired theme.
The Bluetooth-connected Smart scooter (SmartXonnect) remains mechanically unchanged, featuring a 124.8cc, air-cooled engine that produces 9.5hp and 1.5Nm of power.
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