Ola Electric Mobility sees valuation jump 20% on motorcycle launch and battery plan

The launch is set to increase competition in India’s vast two-wheeler market, where Ola will go head-to-head with industry giants like Bajaj Auto, TVS Motor, and Hero Motocorp.

Two-wheelers dominate Indian roads, with 18 million units sold last year. Ola Electric, which went public on August 9 after a $734 million IPO, has experienced a 75 percent rise in share value, reaching Rs 76 per share.

Previously, Ola was valued at $5.4 billion in a September 2023 pre-IPO funding round but lowered its IPO target to $4 billion to attract participants amidst a global tech correction.

HSBC remains bullish on Ola's shares, rating them as a "buy" with a target price of Rs 140, according to Business Standard report.

The firm cites regulatory support and Ola’s plan to develop its own battery as key factors in reducing costs and appealing to investors focused on India's electrification drive.

Despite a broader first-quarter loss caused by subsidy cuts, Ola expanded into a new segment with its e-motorcycle series. By next year, the company aims to integrate its vehicles with its own batteries.

While EV adoption in India is growing gradually, concerns over range, charging infrastructure, and resale value persist.

Morgan Stanley notes that Ola Electric’s strategy of addressing both mass and premium motorcycle segments with competitive pricing will likely heighten rivalry with traditional manufacturers.