Battery cell prices are already low enough if you are going at scale. Ola at 2 million vehicles per year will require 5 GWh per year at 2.5 kWh per vehicle capacity. They will be able to get good prices as that is a big commitment.
On the other hand, if a company is going to produce only 50K vehicles per year, it will need only 0.125 GWh per year. Battery makers will definitely quote much higher prices for such a low quantity and it can be double the price also.
Another important point is, Govt is already providing the subsidy of Rs 10K ($136) per KWh capacity which itself should cover at least half of the battery costs.
It’s not just batteries. All other component prices also will be much lower at a higher scale. That is how the likes of Hero, Bajaj, TVS, Honda are able to price their ICE 2 wheelers at such lower prices. Many a time, scale and competition will decide the price.
Fixed costs (wages, depreciation, etc…) will be divided over million vehicles rather than few thousand vehicles. Lower scale company will struggle to cover the fixed costs itself.
Agreed!
Economies of scale surely is a critical component of the overall equation. The more people switch, the cheaper it will eventually become. But the current high costs can be a deterrent for purchase.
Sort of a chicken and egg problem…
I am not very optimistic on the 1 L claim. Ola reiterated again and again this will be built in india for the world… And there are pre-orders of App-scooters to be honored by ola( If I am not wrong). So ofcourse indian model could have few of the corners cut, like single battery pack by default and can opt for more on purchase/ or could be sold without the pack itself to be purchased separately or leased/subscibed model. They are anyway looking for economies of scale. And along with that the base of the scooter have to be app-scooter as they need to deliver to international market. So I believe this will be a huge kick start for the electric 2 wheeler industry and possibly and gamechanger for 2 wheeler industry.
Let us see how it goes…
THIS!. I expect it to be priced in competition with Chetak & Ather, however I do expect them to come out with some innovative ownership models.
Ola has a risk appetite with operating at the extreme margins of what state/central laws and policies allow. Sometimes it’s downright in a grey area of state policies.
I want make some points here… the original cost of etergo app scooter is €3399, it’s almost 3Lk in indian currency with inbuilt one battery. Which gives 80km with a speed of 20km… Additional cost of one battery is €699 means 60k…
To get 240km range present cost of the vehicle is 4.2Lk…(I will leave the expected price of the vehicle in India to readers, until it’s officially announced by Ola)
Let’s wait and watch what will the final price of the vehicle in India…
It surely will downscale to INR. Or it will remain in the showroom collecting dust. Those who can afford to pay that for a scooter will be going by a luxury car. Ola will definitely do some strategic moves.
Not just strategic, even in a more obvious way, the original price included labour charges by EU standards (and the lesser one speaks of labour rates in EU, the better). So that itself will cut down on the costs when manufactured in India. Add to that the benefits of local procurement for a good percentage of components (as promised by Ola in the news articles), and you potentially might be able to bring the costs down noticeably.
Nah. The Strom r3 itself goes for 4 lakhs for 200Km range. Why would a scooter cost that much. So. Ola will be competitively priced for sure. But a lot of their scooters will go into fleet using lik bounce.
I still don’t understand the concept of making such a huge factory without a single order yet atleast no order in india yet but seems weird to directly start mass manufacturing.
Highly doubt that it’s a prank. They wouldn’t want to start off on such a note. It’s already so hyped. Won’t look good would it
Ya I suppose they’re going to use bounce and Yulus proof of concept of shared mobility and go all out on it rather than take a an approach like Ather to make personal user vehicles.
Ola Electric already mentioned that they are going for personal user vehicles. Besides, you don’t need millions of vehicles per annum capacity for shared mobility. While it’s clearly a pivot from Ola’s shared mobility, both will co-exist for the foreseeable feature in my opinion.
🤦 l think this Scooter full make for premium class Customers…
atleast no order in india yet but seems weird to directly start mass manufacturing.
