India’s Ola Electric reported a narrower quarterly loss on Wednesday, as the electric two-wheeler maker reined in costs amid rising competition in a fast-growing market.
The company posted a net loss of 5 billion rupees ($51.6 million) in the January-March quarter, compared with a loss of 8.7 billion rupees a year earlier.
Ola Electric reported a 60.6% decline in quarterly delivery volumes to 20,256 units; brokerage Ambit Capital estimated volumes fell 53.3% year-over-year.
Ola expects first-quarter FY27 orders to nearly double from fourth-quarter levels to between 40,000 and 45,000 units, reflecting a recovery in demand.
The SoftBank-backed company said operating expenses, including lease rentals, nearly halved to 4.28 billion rupees and expects quarterly lease costs to fall further to about 3.5 billion rupees.
The firm last week said it would invest $208.5 million in its core vehicle and cell units in a bid to localise manufacturing.
The firm is relying on automation, job cuts and increasing in-house EV cell production to bring down operating costs.
Ola used to lead India’s electric two-wheeler market but has dropped in the ranking as complaints about its service centres drew regulatory scrutiny.
The company has cut prices for its flagship e-motorcycle and plans to launch a new cost-efficient line of EV two-wheeler models to boost sales.
($1 = 96.8050 Indian rupees)
Reuters
