Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

From e-bikes to flying cars: India's Ola plots mobility future

Published 23/09/2021, 15:17
Updated 23/09/2021, 16:26
© Reuters. FILE PHOTO: Girls ride an electric scooter in Ahmedabad, India, December 30, 2018. Picture taken December 30, 2018. REUTERS/Amit Dave/File Photo

(Corrects to say Ola, not Ola Electric, in headline, lede and para 2, clarifies to say electric unit in para 3)

By Aditi Shah

NEW DELHI (Reuters) - India's Ola plans to produce kick scooters, e-bikes, drones and even flying cars under its future mobility scheme to help meet the country's transport needs, the company's founder Bhavish Agarwal said in a blogpost on Thursday.

Ola, backed by Japan's Softbank Group, is building what it calls a "New Mobility" ecosystem which will include mobility services, new energy vehicles and digital forms of auto retail, Agarwal said in his post.

The company's electric unit will soon begin production of its first electric scooter at a plant in the southern state of Tamil Nadu which it says is the biggest in the world. The Indian start-up also has plans to expand into electric bikes and cars.

The future of accessible and affordable transport in India is electric, and internal combustion engines, automobiles and the related ecosystem is "a remnant of the past", Argawal said in his post, adding that consumers have been downgraded to being just "a cog in this giant wheel".

"Our EVs (electric vehicles) are smart, connected AI machines and will leapfrog current personal vehicles that are dumb mechanical devices. They will serve diverse needs through a variety of form factors including kick scooters, e-bikes and yes even drones and flying cars," he wrote.

Agarwal estimates that with EVs costing 80% less to run compared with gasoline vehicles, the company's mobility push could raise vehicle ownership in India to 40% of the population from about 15% at present, and also reduce air pollution.

EVs currently make up a fraction of the 23 million cars, scooters and motorcycles sold in India in a year - with electric scooters leading the pack. This is mainly due to the high cost of EVs compared with gasoline variants and insufficient charging infrastructure.

© Reuters. FILE PHOTO: Girls ride an electric scooter in Ahmedabad, India, December 30, 2018. Picture taken December 30, 2018. REUTERS/Amit Dave/File Photo

To give the sector a boost, India plans to give about $7.5 billion in total incentives to companies to set up battery and vehicle manufacturing, as well as to buyers to switch to EVs.

Tesla Inc, the world's biggest electric carmaker, is also gearing up to begin selling cars in India and has been lobbying the government to reduce taxes on imported EVs.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.