Ola Electric's scooter could lead to market share loss for existing players

Ola Electric's scooter: Pricing would be critical as cost is the biggest deterrent at present

Ola Electric’s plan to build the world’s largest electric scooter (e-scooter) factory — 500-acre plant by 2022 in Tamil Nadu’s Krishnagiri — could dent the market share of Indian two-wheeler majors. A key advantage for e-scooters is a replaceable battery. This should help bring down the cost of the vehicle. Cost, say analysts, is the biggest determinant deciding the pace of adoption, followed by government incentives, cost of ownership, and relevant infrastructure.

The Rs 2,400-crore factory will have an annual capacity of 10 million. This is significant, given that the annual sale of the domestic two-wheeler market is pegged at 15-17