Ola Dealership Cost, Profit Margin & Investment Required
OLA Electric Scooter Dealership: OLA Electric scooter franchise is a great opportunity to invest. The world is moving toward electric vehicles, it is obvious that the future is not about petrol and diesel vehicles but Electric. OLA is tapping this opportunity early and expecting great future growth as the nature of the market will be electric engine-centric. This can be also a great business opportunity for franchise holders with massive future opportunities.
OLA Electric Mobility Private Ltd. has launched its electric scooter for the Indian market on 15, August 2021. Their main manufacturing plant is based in Tamil Nadu, India and it will be done in India and Netherlands. In this article, we will learn about How to get an OLA electric scooter dealership in India, the cost of an electric scooter dealership, what documents require to start the application and, how to apply online.
History of Ola EV Dealership
Ola Electric Mobility is an Indian electric two-wheeler manufacturer. It’s headquarters are based in Bengaluru, Karnataka, India. Ola Electric is a subsidiary of the cab-sharing or booking brand Ola Cabs. This company was founded back in 2017 by Bhavish Aggarwal and Ankit Bhati.
It was established as a wholly-owned subsidiary of ANI Technologies, the parent entity or firm of Ola Cabs. The company’s first major turning point was when it announced its plans to set up the world’s largest scooter factory in Tamil Nadu, India back in 2019.
During Ola EV’s initial stage, they primarily focused on setting up charging stations also producing electric vehicles from OEM partners for its cab service. This factory manufacturing electric two-wheelers is expected to have an annual production capacity of 10 million units.
In 2021, Ola Electric made history by launching its first scooter, the Ola S1, in the Indian market. Soon after its launch in the Indian market, this model received huge appreciation from customers due to its competitive pricing, impressive features, and stylish design. The huge success of their S1 made the brand expand into international markets, including Europe and Asia.
Ola EV Dealership USP
The Unique Selling Point (USP) of Ola EV dealerships lies in their capability to offer customers a comprehensive solution for their EV needs. The USP of Ola Electric can be categorized into the following areas:-
- Innovation and Design – Ola’s Electric scooters, are surely one of the most unique and attractive-looking electric scooters in India. They have been designed with a focus on providing exceptional user experience. Of course, they come with various unique features such as a touchscreen interface, hill-hold assist, cruise control, and many more.
- Manufacturing Capabiity – As mentioned earlier, Ola Electric have set up the largest two-wheeler EV manufacturing factory in Tamil Nadu, having a capacity of producing 10 million units annually. This large scale of manufacturing gives the brand a competitive edge in terms of cost efficiency and supply chain management.
- Battery Technology – This brand has invested in battery innovation and has a battery innovation centre in Bangalore. Other than this, they have also made a strategic investment in Israel-based battery technology company ShareDot. The focus on batteries for electric vehicles will make the brand come with new products in the market.
- Expansion Plans – Ola Electric has no plan to stop its product expansion by launching new products every year. The diversification into new products in future will help the company to cater to a broader market.
About OLA Electric Scooter Manufacturing
| Company | OLA Electric Mobility Private Ltd. |
| Product | Electric Scooter |
| Launch | 15 August 2021 |
| Manufacturing Place | Tamil Nadu, India |
| Official Website | https://olaelectric.com/# |
| Dealer Age Limit | 21 years and above |
| Ola Electric Scooter Cost | Rs. 99,999 – Rs. 1,29,999 INR |
Ola Scooter Dealership Cost
The major investment requires is for the initial stock of scooters, which could cost around Rs. 50 Lac. Godown, showroom space, interior Infrastructure, helping devices, etc will cost a further Rs. 25 Lac. However, including working capital, it could cost around Rs. 80 – 90 Lac.
The Electronic Vehicle trend is slowly starting to grasp the Indian market and within a couple of years, almost half of the vehicle owners in India will be using the new technology. It is also a great initiative from vehicle manufacturing companies to save the environment and as well as reduce costs in the long term. Therefore, it will be justified to say that electric vehicles (two-wheelers and four-wheelers) have got a solid future.
Ola dealership cost is a heavy investment in today’s market but guarantees profit as well. entrepreneurs looking to get a dealership of Ola E Bikes would have to incur a dealership cost of around INR 80-90 lacs including the infrastructure, showroom space, pieces of equipment, and all other things.
80-90 lacs which is almost close to 1 crore is a huge investment. But, looking at the demand for the magnificent-looking Ola E-Bikes, getting the dealership will be an outstanding business opportunity for aspiring entrepreneurs
| License fee | Rs. 50,000 |
| Godown/ Space for showroom/service center | Rs. 5 – 7 Lac |
| Interior Infrastructure | Rs. 10 Lac |
| Initial Stock (50 Bikes) | Rs. 50 Lac |
| Spare Parts for Service Bike | Rs. 5 Lac |
| Working Capital | Rs. 15 – 20 Lac |
| Other Cost | Rs. 3 – 5 Lac |
| Total Investment Required | Rs. 80 – 90 Lac |
Also Read: How to Setup Electric Charging Station Business
How to get OLA E-Scooter Dealership
To apply or enquire for a dealership you need to fill out the online OLA Electric Scooter Dealership application form and submit some documents on the official website of OLA Electric Mobility Private Ltd.
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After confirming your email and filling in basic information, officials of OLA will contact you for documents and further procedures.
You will receive an OTP on your registered mobile number which you need to submit on the official webpage so that you can see your OLA e-scooter dealership /OLA Electric Scooters Dealership status.
Please read the below information to learn about e-bike dealerships and documentation.
How to Apply Online/Enquire for OLA Electric Scooters Dealership?
It is a simple process to apply for an OLA Electric scooter using an online portal. Applicants need to fulfill the form with some basic information and company officials will return it to the applicant for further proceedings.
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- Go to Company’s official website.
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- Go to Dealership Page
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- Enter Your Email Address
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- Confirm your Email Address
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- Wait for reply from officials
Documents Required for the OLA Dealership
Must required documents to start the application for OLA Electric Scooter Dealership:
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- Applicant’s Aadhar Card or Voting ID
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- Proof of Residence
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- PAN Card
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- Land Proof Documents
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- Passport Size Photos
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- Email ID and Mobile Number
What Are the Requirements to Start OLA Electric Dealership in India?
Here are the requirements that you must fulfil to get an Ola Electric dealership in India:-
- Area- To start an Ola Electric Dealership in India, having a physical showroom space in mandatory to display the vehicles and a service centre for after-sales services. The ideal area required for showroom would be around 2000-3000 square feet in a prime location with good visibility and accessibility. On the other hand, the service centre would require quite a large area between 5000-6000 square feet, to easily accommodate the workshop, spare parts storage, and other parts.
- Skills or experience- Having a prior experience in the electric automobile industry would highly be preferred. However, it is not mandatory for people. A strong background in sales, marketing, customer service, and technical knowledge is mandatory. You must also understand the local market, consumer behaviour, and competition.
- Regions of Operation- The dealership location always plays a significant role in determining the success of the business. Ideally, the dealership must be located in a densely populated area with a growing demand for electric vehicles. Major cities like Mumbai, Delhi, Bangalore, Kolkata, and Chennai with robust infrastructure are very crucial.
- Training- Officials from Ola will provide training to the dealership staff on their products, sales techniques, and after-sales services. This training provided will ensure that the staff has the necessary knowledge and skills to effectively sell and support Ola EVs products.
- Staff Requirement- Here are the staff requirements for Ola Dealership:-
- Dealership principal/owner- He is the person who will be responsible for managing overall operations and making strategic decisions.
- Sales manager- Will be responsible for managing the sales team, setting sales targets, and achieving them with calculations.
- Sales executives- Persons in this role will be responsible for interacting with customers, understanding requirements, greeting them, and guiding them through the sales process.
- Service manager- He will be responsible for managing the service centre, coordinating with technicians, and ensuring quality sales.
- Technicians- They will be responsible for maintaining, repairing, and servicing EV products.
- Support Staff- Few people will be responsible for administrative tasks, spare parts, management, customer service, and other necessary functions.
Profit Margin in OLA E-Bikes Dealership
E-Bikes business is a profitable business opportunity. Every Major automobile company is working in this direction and pumping huge investments. In the coming days, some companies are even shifting their 100% manufacturing to electric vehicles only.
The exact profit margin is not been disclosed by OLA but it is said to be 25% per sell.
As said earlier, the EV market in the country is rising and will be grasping the market soon. Therefore, it will be a good thing to expect that the Ola E-Bike dealership business will be a profitable one. Electronic bikes were first launched in India around 2000-2007 and now just before the year Covid started which was in 2019, EV vehicles had a massive sale increase of 509 percent.
On the other hand, when talking about the profit margin of the Ola E-Bike dealership business then it is as much as 25% of the sales value. Dealerships could expect to earn at least INR 2000 more. The numbers are surprising when it is accounted for every month because of the increase in demand for such vehicles.
Is Ola Ev Dealershoip Profitable?
The Return On Investment is not properly mentioned by any officials of the company but, due to heavy demand, one can surely expect a speedy one. The franchise fee for an Ola Electric dealership is around 20k to Rs 1 lakh.
Starting an EV brand in India is surely one of the most profitable businesses. Unfortunately, the average profit margin for Ola Electric is not mentioned but, one can surely expect a good profit at the end of the month. On average, the expected profit margin of EV dealerships in India is between 3-7%. But, you need to make good sales and provide good sales service to customers.
Benefits of Owning an Ola EV Dealership
Here are some of the benefits of owning an Ola EV dealership:-
- Image of the Brand – Partnering up with Ola EV means you are partnering up with a brand which is known for its commitment to sustainability and innovation. It has been and is a leading player in the electric vehicle market in India, and its brand image is very strong and positive.
- Distribution – As an Ola EV dealership, you will automatically get access to a wide range of electric vehicles and their spare products. This will allow you to cater to different customer bases with different needs and preferences. In simple, you will have access to its distribution network, which will help you reach customers in different parts of the country.
- Development – Ola Electric is constantly investing in new products and companies to improve its products and services. Being a dealership partner, you will benefit from these advancements, as you will be able to offer customers the latest and updated electric vehicles and services.
- Awards – Ola Electric has won numerous awards and accolades, including “Best Electric Scooter” award at the Auto Expo 2023. Recognitions like such can help you attract more customers who are looking for reliable and efficient electric scooters.
- Recognition – Ola Electric is a well-known and highly respected brand in the EV industry. Owning one of their dealerships will help you gain recognition and credibility in your area.
- Market Share – Ola Electric is a major player in the Indian EV market, and its market share is growing every year. According to CNBC, they have captured over 52% of India’s two-wheeler market.
- Sponsorships by the Company – Ola Electric often sponsors events and takes initiatives for various EV events. As a dealership owner, you may get the opportunity to participate in those sponsorships, which will help you increase your brand visibility.
- Initiatives by Ola– Ola Electric are committed to promoting the adoption f electric vehicles in India. Over the years, they have launched several initiatives to make EVs accessible and affordable, such as “Ola Electric Drive” program. It offers subsidies and incentives to customers who purchase EVs.
- Demand – The demand for EV vehicles in India is growing rapidly and will grow more in the coming future. The rise in fuel prices, government incentives, and increasing awareness of environmental concerns will help the industry to grow more. Ola Electric is well-positioned to capitalize on this growth, and its dealership will play a key role in meeting all these demands.
Battery Capacity of Ola Electric Scooter
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- The Ola S1 has a 2.98 kWh lithium-ion battery
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- The Ola S1 Pro has a 3.97 kWh lithium-ion battery
Buyers do not require any additional installation to charge the battery of the Ola Electric Scooter. It requires a regular socket for charging.
Conclusion
India is going to be the biggest market for electric bikes and OLA Electric Scooter can be a big player in this segment. OLA scooter is considered to be a safe and profitable venture. It is a great opportunity if you want to invest in an electric vehicle franchise which is also seen as a futuristic investment. We hope this article will help you to understand OLA Electric Scooter Dealership.
Partnering up with Ola Electric is surely one of the best decisions that one could take. They are not only a reputable brand in the Indian EV market but, are always ahead of all of its competitors in our country. Additionally, EV as a brand is a demanded product, so you will always be in a profitable business industry.
Ola is continuing to bring innovative products to the Indian market. Well, if you are looking to get its dealership in India you would have to invest heavily in it. but, the profit will be huge in long term.