I believe in creative destruction: Ola founder on new motorbike prices
Bhavish Aggarwal, founder and CEO of Ola Electric, announced on Monday that his company is set to disrupt the electric motorbike market by launching new models at competitive prices.
At Business Today’s “India’s Road to 2047” event, Aggarwal emphasized his dedication to creative destruction, asserting that the Indian market is ready for high-quality, affordably priced products. He pointed out that Ola Electric has successfully applied this strategy to its scooters and is now targeting the motorbike sector with a similar approach.
“I am a devotee of Lord Shiva — the god of destruction — and I believe in creative destruction. You have to disrupt something to create something new, and startups are all about that,” Aggarwal said.
The Ola Electric founder was responding to industry speculation regarding the pricing of his newly launched motorbikes. Ola Electric recently entered the electric motorcycle market with its Roadster series, which includes three variants: Roadster, RoadsterX, and Roadster Pro. The e-bikes are priced between Rs 74,999 and Rs 2,49,999.
Business Standard, following the launch of Ola’s Roadster series, reported that industry experts view the company’s pricing strategy as more of a marketing tactic than a sustainable business model.
Aggarwal, however, said that people should already know how he is going to price the products and expressed confusion over why people are surprised.
“Ola Electric is a 3-year-old story, but we have gone from zero sales to listing the company and becoming around a $7-8 billion company. That’s not because of something we did, but it’s just because the Indian consumer was ready for a great product at the right price point,” Aggarwal said.
He further explained that Ola Electric plans to use its advancements in battery technology and manufacturing efficiencies to offer motorbikes at significantly lower costs compared to traditional internal combustion engine (ICE) bikes.
Aggarwal acknowledged that while there is notable progress in the EV car sector in India, it remains in its early stages. He emphasised that electric motorbikes represent the next significant opportunity in the market.
According to data from the Society of Indian Automobile Manufacturers (Siam) for July 2024, motorbikes made up 59 per cent of the 14,41,694 two-wheelers sold, compared to 38 per cent for scooters and 3 per cent for mopeds.
Aggarwal noted that the manufacturing technology developed for Ola’s scooters can be seamlessly applied to their new motorbikes. For instance, the Bharat cells used in scooters will also be employed in motorbikes and future products. This allows the company to leverage existing supply chain efficiencies and cost advantages to enhance the affordability and performance of their motorbikes.
On the volume in the motocross industry, he said people are eagerly anticipating the arrival of electric motorbikes, having already recognized their benefits, such as lower operating costs.
With prices now competitive with traditional internal combustion engine (ICE) vehicles, there is a growing readiness and willingness among consumers to embrace electric motorbikes.
First Published: Aug 20 2024 | 10:10 PM IST