Ola Electric Powers Up—Will Rare Earth-Free Motors Spark a New EV Era?

Image Source : Indian Retailer

Ola Electric Mobility Ltd is entering FY26 with a sharper focus on operational consolidation, margin expansion, and technologydriven differentiation. The company is looking to manufacture 325,000375,000 electric vehicles in the ongoing fiscal, while consolidated revenue has been set at ₹42–47 billion.

Key Highlights

Ola Electric aims to turn auto EBITDA positive in Q2 FY26 and produce operating cash flow in H2CY
Rare earthfree motors have been productionized and will be part of new models beginning next quarter
The firm has adequate inventory levels and is procuring rare earth magnets from two nations in an attempt to make supply chain reliability

Battery Cell Business and Gigafactory Expansion

Ola Electric will complete installing 5 GWh capacity in its cell manufacturing plant this year
Locally produced Bharat Cell is undergoing performance and safety trials prior to phased commercialization
Cell business will likely be a major driver of the company's attempts to reduce input costs and increase gross margins

Strategic Outlook

FY26 has been designated to be a consolidation year, with an emphasis on cost control, product development, and network optimization
Ola Electric plan includes launching new twowheeler models and expanding its presence in Tier II and Tier III cities
The company is relying on vertical integration—rare earthfree motors to battery cells—to drive longterm profitability

With a refreshed strategy and technologyled approach, Ola Electric is looking to get back into its rhythm and regain dominance in India's changing EV landscape.

Sources: Economic Times Auto, Rediff Moneynews, Entrepreneur India, HDFC Sky, Ola Electric Investor Relations