Ola Electric to Invest $208.5 Million in EV and Battery Units

Ola Electric has announced an investment of $208.5 million into its core vehicle and battery cell businesses as the Indian electric two-wheeler maker intensifies efforts to cut costs and boost local manufacturing. The SoftBank-backed company said the investment, expected to be completed by May 14, 2027, will support automation, in-house EV cell production, and the launch of a more cost-efficient range of electric scooters and bikes.

The company has been working to reduce operating expenses through measures such as automation and workforce optimization while aiming to achieve profitability amid mounting competition in India’s electric vehicle market. Ola Electric had earlier stated that manufacturing its own battery cells — a process it began last year — is a crucial step toward improving margins and reducing dependence on imports. In February, the company projected operating costs could fall by as much as 50% in the coming quarters after reporting a narrower quarterly loss.

For the financial year ended March 31, 2026, Ola Electric’s EV business posted revenue of 47.17 billion rupees, while its battery cell unit generated 730 million rupees in revenue. Once holding nearly half of India’s electric scooter market, the company has recently lost market share to established rivals such as Bajaj Auto and TVS Motor Company, as well as competitor Ather Energy, all of which have expanded their product portfolios and distribution networks.

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