Ola Electric surged 20%, reaching a $6.99 billion valuation, after launching motorcycles and promising lower costs with in-house batteries.
The e-motorcycle launch will heighten competition in India’s two-wheeler market, challenging rivals like Bajaj, TVS, and Hero.
Two-wheelers dominate Indian roads, with 18 million units sold last year.
Since its Aug. 9 IPO, Ola Electric shares have surged 75% from the 76 rupee launch price.
Ola Electric, initially valued at $5.4 billion, cut its IPO target to $4 billion due to global tech corrections and investor attraction.
HSBC noted that the e-scooter maker’s battery plan and local EV parts production will attract investors in India’s electrification.
HSBC rates the shares “buy” with a 140 rupee target, citing regulatory support and cost-reduction capabilities.
Ola Electric reported a wider Q1 loss on Wednesday, but launched new e-motorcycles Thursday, planning in-house batteries by next year.
EV adoption in India is rising, but slowly, due to range anxiety, limited charging infrastructure, and low resale value.
Morgan Stanley stated that Ola Electric’s motorcycles, priced close to traditional models, will heighten competition in both mass and premium segments.
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