Ola Electric spent ₹229 crore as three-wheeler launch slips

New Delhi: Ola Electric Mobility Ltd has spent at least ₹229 crore on developing electric three-wheelers, as delays push back the launch of a vehicle meant to help the company diversify beyond scooters.

The Bengaluru-based company disclosed the spending for the first time in its annual report for fiscal 2026. The three-wheeler programme remains under development and is now expected to be completed between March 2027 and March 2028, according to the report released Tuesday.

Ola had earlier targeted a passenger electric three-wheeler between June 2025 and January 2026, followed by a cargo model in December 2026. Ola didn't respond to Mint's query on the exact timeline for the launch of three wheelers.

The delays come as Ola tries to diversify beyond electric scooters, its main business, where it has lost significant market share to established manufacturers such as TVS Motor, Bajaj Auto and Hero MotoCorp, as well as newer rival Ather Energy.

The three-wheeler programme is among several projects still under development, including battery cells, motorcycles and hyperchargers. The company said the ₹229 crore includes costs related to vehicle design and engineering, testing, materials, services and prototype tooling.

Subhabrata Sengupta, a partner at Avalon Consulting, said the electric three-wheeler business opens both domestic and export opportunities, particularly in South-East Asia.

“The company may also look to enter the segment to generate more cash for its two- wheeler business also,” Sengupta said. “The market is very competitive and due to the hit to the Ola brand, they will find it difficult to enter.”

Ola first laid out its three-wheeler roadmap in November 2024. Chairman and managing director Bhavish Aggarwal said the vehicle would help diversify the company’s revenue base and share much of the technology used in its S1 scooter platform.

Since then, Ola’s share of India’s electric two-wheeler market has fallen from about 50% at the end of March 2024 to around 8% in recent months, leaving it in fourth place behind its larger rivals.

The company’s focus in the near term is also on its battery-cell business. Ola has started production at its cell plant and is working toward 6 gigawatt-hours of capacity, after scaling back from an earlier plan to build 20 gigawatt-hours initially. The company has said expansion to 20 gigawatt-hours would depend on raising funds for the project.

Ola sold just under 200,000 electric scooters in fiscal 2026, about half the previous year’s volume. It has also been reducing its sales network, cutting the number of stores from about 4,000 to roughly 700.

The three-wheeler market would put Ola up against established manufacturers including Bajaj Auto, TVS Motor and Mahindra & Mahindra. Electric three-wheelers already account for more than 65% of the segment’s sales, according to data from the federation of automobile dealers association (Fada).

The investment in developing such products comes as Ola works to reduce its cost base. Revenue fell about half to ₹2,253 crore in fiscal 2026, while its loss narrowed to ₹1,833 crore from ₹2,276 crore a year earlier.