Ride-hailing service Ola plans addition of 10,000 Electric Three-Wheelers in India

Ride-hailing service Ola plans addition of 10,000 Electric Three-Wheelers in India

Ride-hailing service Ola has announced its plan to add 10,000 electric three wheelers in India over next 12 months. India has been moving slowing in electric vehicle segment and Ola’s move to add 10,000 electric vehicles will raise awareness about sector in the fastest growing emerging economy. Ola plans to introduce electric three wheelers in three major cities. Ola has already run electric cars and three-wheelers in Nagpur under a test project.

Indian government isn’t offering subsidy on electric vehicles but the government indicated that it could scrap the need for special permit for running electric three-wheelers and buses. Ola claims that the company has one million drivers registered on its network. The company also indicated that it plans to register 1 million vehicles by year 2021.

While China accounts for nearly 50 percent of sales in electric vehicles segment, the share of India has been negligible. As per latest stats, electric vehicles account for 0.1 percent of nearly 3 million vehicles sold in India every year.

While ride-sharing services have been raising funds and expanding their operations, majority of them have been registering loss. Uber has been blamed by many regional transport unions for creating disruption in the sector while burning cash of investors as well. The story of ride-sharing services in India has been the same. The services have been spending lot of money on discounts and advertising in order to gain customers.

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