Ola Electric's e-bike pricing sparks debate across EV industry

Industry views firm's approach as marketing tactic rather than a sustainable model

- NITIN KUMAR

The launch of a range of electric motorbikes (e-bikes) by Bengalurubased Ola Electric, a first for the company, has disconcerted the industry because the low price the firm claims to be offering has the potential to disrupt the market.

On August 15, Ola unveiled its Roadster series e-bike with a starting-price at ₹74,999. This new pricing undercuts the previous lowest price in the category, which was ₹1,10,000.

This pricing strategy has sparked debate in the industry, with many insiders viewing Ola's approach as more a marketing tactic than a sustainable business model.

"This is a market-luring statement at this point. The real test is building and delivering a product at that price," said Jaibir Siwach, founder and chief executive officer, Kabira Mobility, a Goa-based motorbike maker.

Siwach added the numbers did not add up because the battery pack and drivetrain usually accounted for about 70 per cent of an electric vehicle's cost. "A high-quality battery pack costs about ₹14,000 per kWh. For a 4.5 kWh battery, that's ₹63,000 alone, and additional components push the total beyond 1 lakh,” he noted.