Ola bets on in-house '4680 Bharat Cell' and sports scooter launch amid sales slowdown

Bengaluru-headquartered electric two-wheeler maker Ola has announced the integration of its in-house developed Lithium-ion cell ‘4680 Bharat Cell’ into its vehicles. The first batch, S1 Pro+ 5.2 kWh and Roadster X+ 9.1, fitted with Bharat Cell, will start in September of this year. Both models will see price reductions of ₹30,000 and ₹35,000, respectively. The company is also set to launch a new product in the sports scooter category with the all-new S1 Pro Sport, and deliveries will start from the beginning of 2026.

Additionally, Ola also plans to integrate its in-house developed ‘ferrite motor,’ which, according to the company, will use no rare-earth magnets. These motors will be deployed in its vehicle starting Q3 FY26 in a phased manner. Speaking at the company’s event on Independence Day, Bhavish Aggarwal, Founder and CMD, Ola Electric, said the company was looking at building on new technologies. “It shows that world-class innovation can be imagined, engineered, and manufactured entirely in India. We are expanding our product portfolio with the S1 Pro Sport and the S1Pro+ & Roadster X+ with our cells. This, alongside our Moonshot project, the Diamondhead, builds on our efforts to end the ice age and make India a global hub for clean energy and EVs," Aggarwal said.

These new launches come at a time when the company is facing intense heat as it tries to steady a dropping market share in the e-two-wheeler segment. According to Nomura's note dated 1st August, citing Vahan data, in July 2025, TVS Motors maintained its leadership at 22000 plus vehicles, an increase of 14% year on year with a 21.6% market share. Bajaj Auto also saw an uptick in its EV vehicle sales, growing 11% year on year with 19700 vehicles with a 19.1% market share. Ola, however, saw its sales drop by 57% YoY, registering sales of 17800 vehicles in the month with a market share of 17.3%.

In Q1 FY26, the company’s automotive segment raked in revenue of ₹826 crore against ₹1,644 crore in the corresponding quarter of last year. Even the total number of vehicles delivered dropped from 1.25 lakh in Q1 FY25 to 68,192 in Q1 FY26. “Our cost reduction program, Lakshya, delivered on its targets to reduce our auto opex to ₹105 crore a month from ₹178 crore a month in Q3 FY25. Consolidated opex now is ~₹150 crore a month. As a result, Auto EBITDA has improved to -11.6% and consolidated EBITDA has improved to -28.6% from -113.9% in Q4. There is more room to optimise opex over the coming quarters, and we will be targeting bringing this down further to 130 crore a month (iso-volume) through FY26. Even with doubling the volume, consolidated opex at FY26 exit should remain around ₹150 crore a month,”  the company said in its July earnings release this year.

Ola has budgeted ₹2,800 crore, including both the Capex and pre-operative costs for its 5GW giga factory near  Krishnagiri in Tamil Nadu, where the cells and scooters are produced. According to the company, it has already invested about ₹1,500 crore, and the remaining ₹1,200 crore + sum will be invested over this year and some into next year.

Nomura, in its read-through of Ola results in July,  noted that the Indian E-2W industry is transitioning from a subsidy-led growth phase to a more sustainable model with Industry-wide profitability gradually improving as players focus and better cost structures, in-house capabilities (like batteries, ABS, and motors), and larger volumes. “Battery costs have started declining again in recent quarters, supporting margin expansion and reducing price pressure. Simultaneously, there is a visible shift toward better quality and more reliable products, especially in the mass segment, which is critical to capturing the next leg of demand," the report said.