Divyank Kushagra Bansal 
According to a Reuters report, Indian electric two-wheeler maker Ola Electric has reduced its sales targets for 2023-2025 by more than half and delayed its target of becoming profitable by a year. The report makes these claims after coming across an internal financial projections document and confirmation from two sources with direct knowledge of the company’s finances.
The report suggests that the company is now targeting to sell 300,000 e-scooters in the ongoing fiscal year till March 2024, two-thirds lower than Reuters’ previous projection of about 882,000 units. The same internal document also revealed that the revenue target for the ongoing fiscal year has been revised to $591 million from the previous figure of $1.55 billion – a cut of about 60%.
It is thought that this move is in line with Ola Electric’s impending $700 million stock market listing. One of the anonymous sources who confirmed this told Reuters the following: “The new numbers have been toned down so the company can meet or exceed them…that is what investors want to see,” giving clear indications that the company intends to come across as one that delivers on its sales and revenue targets to attract a healthy number of public investors.
The sources have also stated the Indian government’s lowering of incentives and subsidies on electric scooters as the reason behind this move. This alludes to increased retail prices which have allegedly affected the sales. Interestingly, despite this challenge, Ola Electric continues to be India’s market leader in e-scooters with a 30% share, claimed Reuters.
Before the incentive cuts, Ola Electric predicted its first operating profit of $220 million in the ongoing FY2023-24. Now, the document shows the company is expecting to record an operating loss of $92 million this year and a profit of $111 million next year.
Ola Electric, however, has denied acknowledging the document.
