Press Release-Indian Electric Two-Wheeler Market Booms as Ola Electric's INR 1,226.43 Cr IPO Plans Drive Momentum

Gearing up for its IPO, Ola Electric Mobility Ltd disclosed plans to allocate a substantial portion of its INR 5,500-crore public issue proceeds towards enhancing its cell manufacturing capabilities. With an eye on growth, the company intends to invest INR 1,226.43 crore to scale up its cell production plant from 5 GWh to 6.4 GWh. Additionally, INR 1,600 crore will be directed towards research and product development, while INR 800 crore is earmarked for debt repayment. 

The deployment of funds aligns with Ola Electric's vision of revolutionizing the electric vehicle landscape. Their ongoing project, the Ola Gigafactory in Tamil Nadu, poised to be a game-changer, is slated for completion in phases. Phase 1 (a) targets completion by March 2024, with a capacity of 1.4 GWh. Subsequently, Phase 1 (b) aims to ramp up capacity to 5 GWh by October 2024. This strategic utilization of resources underscores Ola Electric's commitment to innovation and sustainability, reinforcing its position as a frontrunner in the electric vehicle domain. 

In a remarkable surge, India's electric scooter and motorcycle market witnessed exponential growth in 2023, buoyed by robust government subsidies and the emergence of ambitious startups. Sales soared to a record high of 866,853 units, marking a staggering 33.5% increase from the previous year. The growth trajectory, supported by initiatives like FAME II, signals a promising shift towards sustainable mobility solutions.

India's burgeoning presence in the global two-wheeler arena presents an unparalleled opportunity to capitalize on its manufacturing prowess. With a strategic focus on scaling up electric two-wheeler production, India stands poised to cater to its domestic market and establish itself as a critical player in the global EV landscape.

The global electric two-wheeler market continues to gain momentum, driven by urbanization, escalating fuel prices, and mounting environmental concerns. Valued at USD 74.01 billion in 2023, the market is projected to reach USD 124.02 billion by 2032, reflecting a robust CAGR of 5.9%.

Asia Pacific dominates the electric two-wheeler segment, commanding around 90% of global sales. With China leading the pack, India, alongside other vital markets like Vietnam, Indonesia, and Thailand, plays a pivotal role in shaping the future of electric mobility globally.

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