Ola Electric Cuts Quarterly Loss as Cost Controls Ease Pressure

Ola Electric Mobility reported a narrower quarterly loss as the company reduced operating costs amid intense competition in India’s fast-growing electric two-wheeler market. The SoftBank-backed EV maker posted a net loss of 5 billion rupees for the January–March quarter, compared to 8.7 billion rupees a year earlier. The improvement came despite a sharp decline in delivery volumes, which fell more than 60% year-on-year to 20,256 units.

The company said operating expenses, including lease rentals, nearly halved during the quarter as it focused on automation, job cuts, and expanding in-house EV cell production to lower costs. Ola Electric also announced plans to invest over $200 million into its vehicle and battery cell businesses to strengthen local manufacturing capabilities and improve efficiency. The company expects lease-related costs to fall further in the coming quarters.

Once the leader in India’s electric scooter market, Ola Electric has recently lost ground due to rising competition and regulatory scrutiny over complaints linked to its service centers. To revive growth, the company has reduced prices for its flagship electric motorcycle and plans to launch a new range of cost-efficient EV two-wheelers. Ola also expects order volumes in the current quarter to nearly double compared to the previous quarter, signaling a possible recovery in demand.