Know Cost, Profit & More About Electric Scooter Dealership

The modern world is heading towards electric vehicles (EV) due to rising gas prices and environmental concerns thanks to the large on-road volumes of diesel and petrol vehicles causing air pollution. The Asia Pacific region is expected to emerge as a global market leader for electric vehicles by 2030. Electric scooters have zero fuel costs and hence zero emissions. Besides, they offer mileage equal to petrol vehicles at just 15% of the per litre petrol cost. Though initial models had a range issue, the battery efficient models of OLA scooters can exceed 100km/charge.

The electric scooter market stood at 5.57 million units, with mopeds (small motorcycles) being 4% of the 2-wheeler market. The total sales volume from 25 companies manufacturing EVs in India was 25,598 units in 2020 and 1,16,669 electric vehicles in 2021. This is a 355% year-over-year (YOY) jump upwards in a COVID affected year. In this scenario, starting an electric vehicle,i.e., OLA dealership, a reputed brand in India, is an excellent choice. So let us study the nitty-gritty of the OLA electric scooter dealership.

Did you know? The market for electric scooters will reach USD 41.98 billion and a CAGR of 8.5%  by 2030.

Why start an OLA electric scooter dealership?

Starting an OLA electric scooter dealership can be of significant advantage. An Indian electric vehicle like OLA Electric Scooters, in today’s polluted world, is a great choice for several reasons such as:

• The electric or battery-operated vehicles called EVs are green, sustainable, and economical alternatives to polluting emission-producing petrol and diesel vehicles.
• In the automobile sector, EV's foreign direct investment inflow (FDI) is ₹1.56 Lakh Cr (USD 85 billion)!
• In particular, the Asia Pacific regions and India have better and lower manufacturing costs that are advantageous to investors looking for profitable opportunities in the automobile sector.
• The Indian market is expected to become an EV market leader in mass-transit and shared mobility electric vehicles by 2030, providing a huge number of well-paying EV dealerships.
• About 2 Cr two-wheelers are sold annually in India, providing a vast scope for OLA dealership opportunities. 
• The Indian Government is giving the EV market a huge push in subsidies, encouragement and policy matters which also help promote green initiatives to control air and vehicle emission pollution.
• The Government of India (GOI) initiative also substantially reduces the fuel dependency of two-wheelers which is facing a rise in the acquisition costs of diesel, gas and petroleum.

Also Read: How To Successfully Launch Automobile Accessories Business

A Note on OLA:

Established in 2017, Ola Electric is a subsidiary of ANI Technologies, owning the popular Ola Taxi Services. The goal was to switch to electric vehicles to reduce diesel and petrol vehicles' emission levels and fuel dependency. The founder Bhavish Aggarwal bought a stake of 92.5% valued at ₹1 Lakh from ANI Tech to form this new entity in early 2019. The main investors in Ola Electric are Matrix India, Tiger Global, Ratan Tata, SoftBank’s Falcon Edge and Temasek.

Here’s a quick table on OLA Electric.

OLA electric scooter dealership:

The main manufacturing plant of OLA Electric Mobility Private Ltd. is in Tamil Nadu, and its EVs will be manufactured both in India and the Netherlands. The dealership for OLA electric scooter franchise offer on EVs and charging stations from OLA Electric Scooters is a fantastic opportunity to invest in and promises huge profit margins. 

About OLA E-Scooters:

OLA team’s “Mission Electric” strives towards a State where all scooters on the road will be electric scooters, and they hope to achieve this by 2025. Ola Electric launched the OLA scooter S1 and S1 Pro on India’s 75^th Independence Day, 15^th Aug 2021. The two variants were expected to be delivered around October 2021, and sales started from September 8^th 2021. The S1 Escooter is priced at ₹99,999, and the S1 Pro is priced at ₹1,29,000. The OLA company has also established banking partnerships to offer an affordable leasing option on the two E-scooters and offers a dealership of OLA electric scooters. 

• The OLA S1’s maximum speed is 90 km/hr with a great pickup, from 0 up to 40 km in a mere 3.6 seconds. It also has a peak motor power of 8.5 KW and a riding range of 121 km with a full battery. It is available in multiple colours like sky blue, yellow, white, black, and red. 
• The OLA S1 Pro’s gets to a maximum speed of 115 km/hr with an awesome pickup just like the S1. It also has a peak motor power of 8.5 KW and a riding range of 181 km with a full battery. It is available in ten colours like sky blue, yellow, white, black, red, and more. 

About the OLA factory status:

At the E-scooter launch, the OLA owner Bhavish Aggarwal stated that their factory’s first phase is in place with a capacity of 2 million scooters per annum. The scooter is a complete ‘Made in India’ product and uses globally competitive Indian manufactured parts and local talent for all its processes like manufacture, conceptualisation, and design. Only the battery used in the S1 series is from Korea. The E-scooters work on a multiple user profile app that allows customising the profiles based on their requirements and needs.  

Setting a record, the initial bookings of electric scooters from OLA soared past the 1 lakh mark in just two days! Bookings are pouring in from over 1000 Indian cities, and OLA is racing to start deliveries on time. It also has a huge demand for its OLA electric bike dealerships.

OLA Dealership Cost:

A large portion of the OLA electric scooter dealership apply cost, fee, and investment to procure the OLA E-Scooters S1 and S1 Pro, which may need an investment of ₹50 Lakh. Plus, you require showroom and godown spaces, service and charging section, interior office infrastructure, and such that can cost you an additional ₹25 Lakh. However, the total investment of OLA Dealership could be in the range of ₹80-90 Lakh, inclusive of the working capital and its inventories. Here is an approximation of the total cost for an E-Scooter dealership with OLA.

Procedure to get the OLA Scooter dealership:

Follow this procedure to learn how to take OLA electric scooter dealership.

• Firstly contact the OLA headquarters for the dealership brochure containing all details of their agreement and offer. You can find the contact details at: https://www.olacabs.com/contact.
• Email your OLA electric scooter dealership application according to the information provided by the company.
• The company officials will revert with their offer.
• Carefully review the agreement and its clauses containing the terms, the investment required and the Full Disclosure Documents.
• Do your research and market study before you establish your future OLA dealership.
• It is ideal if you can self-finance the deal. If not, you must secure finance from the banks, investors etc.
• When you are ready and are confident of moving ahead, sign the Dealership Agreement with OLA Electric and make your deposits as per the agreement.
• Use OLA’s support and training model to launch your dealership.

Documents Required for the OLA Dealership

The application form will require you to submit certain documents to enable the application processing phase of the OLA EV Dealership. The documents are

• Aspirant dealer’s Voting or Aadhar Card.
• Residential proof
• PAN Card
• Documents to prove the renting or owning the required spaces in a commercial area.
• Photographs in Passport Size
• Registered Mobile Number
• Applicant’s Email ID 

Profit Margins of OLA electric scooter dealership:

The OLA electric franchise EV dealership is a huge-profit business. The world is switching to e-scooters, and the business is booming. Every major company in the automobile sector in India will soon launch their EVs and are investing hugely in charging stations, EV dealerships, infrastructure and manufacturing capacity building. An OLA scooter's profit margin per sale is an amazing 25% of the value of an electric two-wheeler.

Features of the EV:

The EVs of OLA have certain unique features built to last, efficient and trendy. The notable ones are

• LED lighting
• Disc brakes- Front
• A reverse driving mode
• A Hyper-drive motor
• TFT Display
• Rapid acceleration and pickup
• The Hill-hold function ensures no slippage on slopes.
• A Port charger to charge on the go and connect anywhere.
• Backlit Digital Speedometer
• Bluetooth and Mobile Connectivity

Battery Capacity:

Potential buyers of the OLA S1 series do not need any additional charging installations when charging the long-lasting Ola Electric Scooter battery. All you need is the charging cable provided and an electric regular charging socket. The S1 series battery details are provided below.

• The EV-S1 from OLA uses a 2.98 kWh Li-ion battery.
• S1 Pro from OLA uses a 3.97 kWh Li-ion battery.

Also Read: What are the 6 Profitable Dealership Business Ideas in India?

Conclusion:

India will be a huge market for electric bikes. The OLA scooter franchise dealership offers OLA Electric Scooters, although calling for a large investment is a safe and profit-centric deal with a future vision. The EV market in India is rising phenomenally, and the OLA electric scooter dealership investment is highly profitable. As their dealer, you will face some initial challenges and earn as much as 25% of the sales value. You may have to multi-task and focus hard to make your outlet successful. 

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