Ola Electric has announced a significant price cut of up to Rs 25,000 on its S1 Pro electric scooter model to boost sales. Ola Electric Cuts E-Scooter Prices Amid Slowing Demand
The company said it is passing on cost savings from localization and higher production capacity to customers. Following the price reduction, the Ola S1 Pro is now priced at Rs 99,999, down from its launch price of Rs 1.29 lakh.
“As we localize production and ramp up capacity, we want to pass on cost savings to customers. Ola S1 Pro is now at Rs 99,999! Purchase now on olaelectric.com and save up to Rs 25,000!,” Ola Electric said in a tweet.
The reduced price makes the S1 Pro more affordable and competitive than rivals such as Ather Energy, Hero Electric, and Okinawa Scooters. Ola Electric had last hiked the prices of its electric scooters in September 2022 citing rising input costs.
Experts say the latest discount indicates lower-than-expected consumer demand amid high prices and numerous quality issues reported by customers. Ola Electric is looking to revive sales momentum in the face of competition. The company has been carrying out test rides and drives across cities to woo customers.
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Ola Electric founder and CEO Bhavish Aggarwal commented on the price cut, “We want to make our products affordable and create an EV revolution that reaches every home. Localization and higher production capacity are allowing us to pass on cost savings to customers. We will continue to drive down prices through efficiencies and indigenization.”
Demand Slowdown Amid High Prices
The price cut comes at a time when the electric two-wheeler segment is facing headwinds due to high acquisition costs, lack of public charging infrastructure, battery safety issues, and more. High prices have been a deterrent to the mass adoption of electric scooters in India.
Industry experts say demand has slowed down considerably due to the multiple challenges. Most electric two-wheeler makers have been compelled to offer discounts to clear inventories.
“The demand for electric two-wheelers has come down drastically in the last few months. High prices have been one of the major roadblocks. Ola Electric has taken the right step to get sales moving again with this significant price cut,” said Vinkesh Gulati, president of the Federation of Automobile Dealers Associations (FADA).
Ather Energy and Okinawa Scooters are also providing discounts of up to Rs 15,000 on their electric scooters. Hero Electric recently slashed prices across models by up to Rs 15,000.
Experts say affordability is key to the mass adoption of electric vehicles (EVs) in price-sensitive markets like India. The price cuts could provide a boost to electric two-wheeler sales if sustained over some time.
Ola Has Faced Challenges
Ola Electric has been facing several challenges since it commenced deliveries of its S1 Pro scooter in December 2021. The company has come under criticism for poor build quality, breakdowns, delayed deliveries, lack of service centers, and more.
There have been multiple fires reported in Ola e-scooters which prompted an investigation. The company has attributed the incidents to customer negligence. Ola Electric recalled 1,441 units last year to check for potential issues.
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The brand also faces tough competition from players like Okinawa, Ather, and Hero Electric which have more experience and wider presence in the electric two-wheeler segment.
Analysts say Ola Electric has its task cut out to address the quality issues and ramp up product development and after-sales service to gain more consumer trust. The price cut may help generate sales volumes in the short term.
“We want to make EVs affordable and reach every Indian home. Localization and higher production are allowing us to pass cost savings to customers.” – Bhavish Aggarwal, Founder and CEO, Ola Electric
“The demand for electric two-wheelers has reduced drastically due to high acquisition costs. Ola Electric’s significant price cut is a step in the right direction to revive consumer demand.” – Vinkesh Gulati, President, Federation of Automobile Dealers Associations (FADA)
“Affordability remains one of the biggest roadblocks for mass adoption of EVs in India. The price cut could provide a good boost to Ola Electric sales if sustained over a longer period.” – Anonymous industry expert
