Ola Electric targets 50% cost cut

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February 13, 2026

Ola Electric targets 50% cost cut

Lossmaking Indian two-wheeler maker Ola Electric said on Friday that it seeks to lower its operating costs by as much as 50% in the coming quarters, after posting a narrower third-quarter loss as it sets its sights on turning profitable.The SoftBank-backed firm posted a narrower quarterly loss of 4.87 billion rupees ($53.75 million) as its new ‌lineup of ⁠models cost less ⁠to produce, partly offsetting a sales slump.Ola, which once led India's electric two-wheeler market with a 50% market share at its peak, has stumbled over the last year, affected by a deluge of complaints about its service centres that drew regulatory scrutiny."As EV penetration growth has slowed and our service execution has required strengthening, we chose to realign our retail footprint, cost structure, ⁠and operating ‌model to a sustainable steady state," Ola said in a letter to shareholders."The result is a structurally lower volume breakeven business with ⁠significantly improved operating leverage."The electric two-wheeler manufacturer now projects operating expenses of 2.5 billion rupees to 3 billion rupees in the next few quarters, from 4.84 billion rupees in the third-quarter.If it achieves this target, monthly sales required to post an operating profit would drop to 15,000, the company said. Ola Electric had average monthly sales of 11,000 in the December quarter.Ola has brought down its operating costs ‌in recent quarters through increased automation, job cuts and ramping up in-house production of EV cells along with a new cost-efficient lineup of models.The company said its efforts ⁠at stabilising issues that plagued its service centres, as well as the higher range offered by models powered by in-house EV cells would bolster growth.Sales slid 61% in the three months through December, according to company data, resulting in a 55% decline in revenue.The company retained its full-year revenue target of 30 billion to 32 billion rupees, as well as a volume target of 100,000 units from October-March.