Ola’s electric scooter is the latest entrant to a small but rapidly growing market for electric two-wheelers. The scooter is priced more aggressively than its peers and closer to traditional ICE (internal combustion engine) models than others.

Ola’s ambitious plunge into a highly technical industry with long lead time for R&D has been boosted by generous funding and a belief that India is ready for the EV change. In fact Ola boss Bhavesh Aggarwal has been widely quoted as saying that all two-wheelers should turn electric by 2025 during the launch event on 15th August. It is by all standards an ambitious goal.

“If they deliver what they are saying and create the required service backbone, then this is doable”, remarks Nikunj Sanghi, Chairman of ASDC. Sanghi, like many auto watchers are waiting to see if Ola delivers on what it has promises, be it features, service centres or supply chains.

“I would be cautious, the 2 wheeler business is very nuanced and not like making paper clips”, says Hormazd Sorabjee, Editor of Autocar India.

Sorabjee points out that a supply base for EVs has to be built up. Many components are imported, batteries are expensive and margins continue to be thin. Favorable regulation and subsidies are the biggest boost for EVs right now. There is one more factor though that could prove the right tail wind. Petrol prices at Rs 100 per litre is the biggest incentive for bookings of electric vehicles, especially two-wheelers.

Nikunj Sanghi speaks of a dealership in Alwar where 50 vehicles were sold in just 15 days and the dealer has a waiting list. The other advantage for two-wheelers over four-wheelers to go electric is they have smaller batteries that are relatively easily rechargeable are used on average for less than 100 km per day.

“Two-wheeler owners are more interested in their pocket rather than saving the planet”, says Hormazd. Perhaps that is just the right incentive that could fulfil a dream to go electric by 2025