In a significant market movement, Ola Electric’s shares climbed sharply on the Bombay Stock Exchange (BSE) today, showcasing investor confidence in the company’s latest product expansion and strategic direction in Tamil Nadu’s burgeoning EV ecosystem.
The Bhavish Aggarwal-led company saw its stock surge nearly 8% to reach INR 80.75 during intraday trading on February 1, before settling at INR 77.01, marking a 3% increase from its previous close of INR 74.79. The rally pushed the company’s market capitalization to INR 33,967.80 crore, reinforcing its position as one of India’s leading EV manufacturers.
The stock’s upward trajectory coincides with Ola Electric’s ambitious launch of eight new electric scooters built on their advanced Generation 3 platform. The new lineup spans both mass-market and premium segments, promising significant improvements in performance metrics. According to company specifications, the Gen 3 platform delivers a 20% boost in peak power output, while simultaneously reducing production costs by 11% and extending the vehicle range by 20%.
“The Gen 3 platform represents a quantum leap in electric mobility technology,” said Bhavish Aggarwal, CEO of Ola Electric. “We’re not just launching new products; we’re revolutionizing the entire approach to electric two-wheeler manufacturing in India, with Tamil Nadu at the heart of this transformation.”
The timing of the launch proved particularly fortuitous, coinciding with Finance Minister Nirmala Sitharaman’s 2025 budget announcement, which included the exemption of Basic Customs Duty (BCD) on critical EV components including cobalt powder, lithium-ion battery scrap, LED components, and zinc. These policy measures are expected to significantly reduce manufacturing costs and boost the sector’s competitiveness.
Industry analyst Rahul Sharma from EV Market Research commented, “The convergence of Ola’s product innovation and supportive government policies creates a perfect storm for growth in the EV sector. The company’s strategic presence in Tamil Nadu, with its advanced manufacturing facility, positions it ideally to capitalize on these developments.”
The company’s manufacturing facility in Tamil Nadu, one of the largest two-wheeler factories globally, has already begun production of its much-anticipated ‘Roadster’ electric bike, first unveiled in August last year. This diversification into different vehicle segments demonstrates Ola’s commitment to expanding its market presence and strengthening its manufacturing capabilities in the state.
For Tamil Nadu’s startup ecosystem, Ola Electric’s success story serves as a catalyst for growth. The state, which has positioned itself as an EV manufacturing hub, has seen an increase in ancillary businesses, from component manufacturers to technology service providers. The local startup ecosystem has particularly benefited from knowledge transfer and the development of specialized skill sets in electric mobility technology.
“Tamil Nadu’s EV ecosystem is experiencing a network effect,” noted Dr. Sundari Velayutham, Director of the Tamil Nadu Startup and Innovation Mission. “Ola Electric’s expansion is attracting more startups focused on EV infrastructure, battery technology, and smart mobility solutions to the state.”
Looking ahead, analysts expect the company’s recent product launches and favorable policy environment to continue driving growth in both stock value and market presence. The successful integration of the Gen 3 platform across its product lineup could set new benchmarks for the industry while strengthening Tamil Nadu’s position as India’s electric vehicle manufacturing powerhouse.
