🎯 Key Takeaways for quick navigation: 00:12 Ola *Electric's IPO.* 00:40 Electric *vehicle market in India.* 01:09 Ola *Electric's financial losses.* 02:19 Considerations *for investing in Ola Electric.* 04:26 Importance *of vertical integration in EV business.* 08:51 Ola *Electric's vertical integration and manufacturing capacity.* 11:51 Control *over price, margins, and quality through vertical integration.* 19:04 EV *market segment and pricing challenges.* 21:23 Subsidies *and their impact on EV sales.* 23:26 Risks *for Ola Electric, including raw materials and scale.* 23:40 EV *success factors: Quality, Price, Margins.* 24:07 Ola's *strong subsidies.* 24:22 Struggle *to reach price point.* 24:35 Ola's *distribution challenge.* 24:49 Investment *advice disclaimer.* Made with HARPA AI
12:37 Ola acquired a European EV company Ethergo which designed what is now known as Ola S1. Sorry to say, but Ola acquired a design and made some improvements. They didn't invest in coming up with their own Charging port. Ather on the other hand started from scratch and designed their EV charging standard which is now the official EV charging standard for the country.
Common charging port gives access to third parties charging stations. Like type C cables. It's better to bring common charging ports other than unique ports
Why to reinvent wheel if you can buy technology to it at reasonable cost & grab first movers advantage & tap economies of scale though I concur that kaizen is very much important in technology of charging
OLA has a great potential, but I have to say that the after-sale service of OLA is not up to the mark which is hampering the company's image to a huge extent.
Sir. Ola as a company has poor customer care service. Even for their cab business. So i dont expect them to improve it. They are tata motors of this industry 😅
The fact that they are raising the money to cover the losses is a big red flag. That's not the goal of IPO. See the successful IPO launches, they were already doing well and only needed the money to expand their operations. Their losses are mounting each year and their after sales and quality of bikes is highly questionable as well. Plus more seasoned and trusted bike brands are already in the market.
One important player you ignored and the one who to watch for is Chetak. Chetak(Bajaj) already has established vendors for raw materials and a wide network of distribution centers for sales. Since Bajaj is making 3 wheeler EVs, yulu bikes they could easily get better deals by bulk sourcing raw materials and staying profitable. Also they don't have to rely solely on government subsidies since Bajaj has "deep pockets" (the same words were used by Mr Rajiv Bajaj) and could fund their r&d and marketing for years. Adding to the fact that Bajaj is the biggest exporter of 2 wheelers in India and has extensive distribution centers across the globe, Chetak could make up the numbers for staying profitable. If they can come up with some exciting models, they have their ground set to dominate the sector.
@@mystoganmist813 because they were late to the party and their priority was on ICE. By that time Tesla already established supply chains and made a strong base. And all these European and American car companies cannot function profitably with plants at one location, they needed to set up manufacturing plants in Asia for obvious reasons inorder to be profitable. And for establishing these plants, they need the network of local vendors, distribution centers, talent etc. so they need huge investment for doing so. And the conversion to EV for then was not simple and could not be implemented swiftly like Byd. Whereas in India it's still early days and big players like Bajaj, TVS and Hero are not lagging behind like GM or Volkswagen were. And all these companies also invested heavily in R&D for EVs and came up with products which are in the market. And of course not marketed heavily like ola. And India being one of the world's biggest 2W markets, there is a huge margin to grow. And being a 2w, it is comparatively easier to ship vehicles manufactured in one country all over the world, just like Bajaj and TVS are shipping to almost 70+ countries having production only in India. And it will take years or even decades for ola or any other startup to establish such a presence globally. And since the competition is heating up, if they have to produce volumes for being profitable, they have to look into overseas markets as well. So these companies established do in fact have a huge upper hand compared to startups.
Cells form the core of a battery and currently, Ola uses Lithium-Nickel-Manganese-Cobalt-Oxide (NMC) cells. Sourced from Korea's LG Chem, the almost banana-shaped battery pack comprises 224 cells that are split into two clusters of 112 units each.
Ganesh a lot of people on TH-cam claim that they are an educational channel but honestly most of it is infotainment. But yours is like a real classroom case study education! Wishing you more success ❤
Vertical integration is not a good idea for commodity parts. For example, Tata makes steel, and Suzuki does not. Cars use a lot of steel, but Suzuki makes way more cars than Tata. Vertical integration only works for non-commodity parts. When was the last time you saw a Pizza Hut wheat farm
5 years ago people used to raise eyebrows when the scooter used to cross the price of 80k. Now, that benchmark is 1 Lakh. So, in a few years this benchmark will breach 1.2 lakh and 1.5 lakh. If, EV manufacturers are able to keep the cost to 1.5 lakh in the next 4-5 years it's a game changer.
Bhavesh Aggarwal got shares of ola electric at INR 98,000 only. Even if ola electric got undersubscribed he will be at profit anyhow and he is the sole reason why I'm staying out from ola electric IPO.
He took the maximum amount of risk. So, he is getting the returns. I don't find anything wrong with this. But, I do agree that the valuation of the company is on the higher side after considering the financials of the company. So, steeper valuation, but nothing wrong with what Bavesh is doing.
You are saying the opposite. He is only selling 50% stake i.e. still 15-18% remaining. He is not running away anywhere and finally with a product rather than a service, its at the cusp of becoming big or going bust. Of course there is high risk, the upside is too big.
@@hrushikeshavachat900 taking maximum risks doesn't mean scamming retail investors if the valuation of company is that high then how he get the shares this cheap. I'm seriously at INR 92,500 and even when he started ola electric 2 years back there is no way valuation of company was that low at that time that he got shares at this low price.
@@soumyakantigiri he should leave for the betterment of the company he is the only reason why company will fall in the near future just look at the employee retention of ola it's 42% means out of 100 employee who join company 42 leaves within 1 year.
Ather has better vertical integration and less debt. Quality is far more superior and after sales services are much better. Ola’s ipo is a debt reconciliation program for failed businesses that they’re into. They’ll never meet the scale and it’ll only hamper their sales. Better not invest.
Vertical integration is only present in papers bro . My last organisation i worked in used to supplies Electric motors for their scooter. Controller is procured from another supplier. Most important parts are being procured from vendor then where is vertical integration done 😂
Just visit an ola service center near u.i have purchased 1 month month back after 2 weeks its in service station.since now it's been 3 weeks since my ola is in service station no response from them.just visit nearest ola service evryone who is trying to buy. Ola
The 2-wheeler EV market in India is evolving rapidly, and Ola Electric’s entry has definitely stirred up the competition, creating more choices for consumers.
One thing I believe Ola is missing is focus. They are trying to do everything which sounds impressive but can also backfire. Ather on the other hand seem more focused on what they want.
Ather would have launched a 3 lakh "premium" scooter right now if not for Ola coming into EV 2 Wheeler market. Ather is not focused on Scooters sales. They want to sell future batteries to others.
Master class of finance with sharan is actually a 3-4hr long ad campaign for his 1% club. Not anything more than you find on TH-cam by following quality content creators. Please don't promote his content/products, he might ruin your name.
Yes 100% correct , after sales service is the key to sucess besides orher factors. I owned an Ola S1 pro and so far ola has provided good after service to me , the quality issue is still there in my ola S1 pro, Hopefully ola will improved on this.
I work in the EV manufacturing industry so I understand the risks and rewards associated with OLA IPO. OLA needs to work harder on its R&D as their product is plagued with the issue of spontaneous combustion due to thermal runaway in their battery. It might be due to poor quality materials used in the battery or a bug in their BMS software algorithm. In any case the customers do see these incidents pop up in the news feed every now and then causing hesitation in switching to E-Scooters. As we all know by now an investment of 1 lakh rupee is a considerable amount for the Indian household so people will not want to take risks with that kind of money. But if OLA can somehow manoeuvre around this issue and are able to change their public image to safe and reliable product than they will definitely be successful in the market.
@@barryobrien1890 it helps when you have strategically priced product kind of similar to what JIO did as per current market atandards if you manufacture e2w the overall cost you'll be paying will be around 1.2 lakh without subsidies but with the help of FAME 2 subsidies OLA managed to price the product nearer to 1 lakh as a result people swith9to ola at more ease. But let us do a simple thought experiment let us say Ola launched its IPO and becomes majorly successful what do you think will happen if the news outlets cover that there is an issue with ola scooters. It will be similar to what FORD faces in the 2010s they would have to call back their products from customers leading to a big downfall in their stock prices.. At the end of the day it takes a lot of things to go right for a company when it grows but if one single thing goes south it can lead to the downfall of the whole organisation...
Hii Ganesh! I am a consumer of your content from Madhya Pradesh and I request you to create a video on the problems of my state, the pros and cons and what are the best buisness opportunities to invest in. Also please include some best and worst decisions made by Shivaraj Singh's party and what the next cabinet should learn form it and how should we invest in our state in future.
OLA Electric vehicles Integration manufacturing system The OLA Giga factory in Tamilnadu The costs of Electric vehicles Rs 90K - 1Lakhs And The Electric charging point more over price margin and Quality The Raw materials from various places and competition between EV Vehicles The Dealership compared to TVS motor & Honda less than dealership The case Study OLA company By Think school 🏫 Kudos to Team 👏 Research works in detail
I’m a two wheeler user I have used Bajaj, Honda, KTM and today i do have OLA S1 the worst part is after sales. Ola service is worst I have ever seen, never faced such service issues with other brands, In Karnataka they say Bengaluru’s Indiranagar Ola service is the largest service centre but they don’t have enough tool kits nor technicians to fix the problems with Ola scooters and the same case with all other service center across India. To fix a minor issues with Ola scooters even after having an appointment you have to wait for 5-6days might go upto months.. Great service by Ola 👏
Can't thank enough the team Think School for putting out such valuable & insightful piece of content after thoroughly researching, analyzing and structuring it in a way that all the viewers don't face even a small difficulty while going along with the flow of the video from start to end.....
I am thankful and proud of the work you - @ganesh Prasad and team through this podcast. I saw your talk in TRS. Very inspired to know you and proud of all that you do. Keep going and do more such data based informative videos. This is important for today's youth who base their opinion and decisions on few seconds of video.
One additional note you should have added in the video itself: "If OLA electric can do vertical integration, all the other big players like TVS, Honda (who actually have deep pockets already & don't really need to rely on investments), can do vertical integration too. And these are the titans of the industry who actually know what needs to be done to make a two-wheeler successful. No way OLA electric can beat them being completely new in the industry, after all it is OLA, not Tesla. Bhavish Aggarwal is smart enough to sell his narrative as being the Tesla of India - but it will just always be a narrative & not the Truth"
Hey Team Think School I've been a fan of your insightful financial contents. Your ability to break down complex topics is impressive. Could you please consider creating a video on the current Andhra Pradesh Pradesh financial position? Your expertise would be invaluable in helping the citizens of the state to understand and navigate the economic landscape. Looking forward to another enlightening video as the current media has totally confused everyone.
The indepth explanation always fascinates me. You get to learn so much about market, government subsidies, importance of vertical integration, the risks involved, the targets that are needed to be covered. Outstanding case study Ganesh 💯🤝
Amazing case study I ever found. Explain each and every concept so simple and creative way. One of the most underrated channel till now. Many more miles to go Ganesh prashad ji and the team of think school.🎉😊
1) product build quality 2)batter related heating, dry etc… 3) fast chargers stations ( customer expecting fast charges: 5 to 12 min ( full charge) ) … water proof 4) service 5) durability life E - bike , scooter, car Customer expecting
Ola electric is taking risk and trying to build battery factory which so far others have failed but we need to support. In the long run they will make it
Ola will have some serious competition given Hero is increasing its stake in Ather. With Hero's vast distribution network and capital might, it would be difficult for Ola to complete. Once again, a brilliantly researched and presented video, loved the summary part at the end. 😄🧿
So why is the Vida a flop and Ather should be number one given its first leader advantage. Seems like Ola is now the company to catch. Sales are consistently growing and they have a roadmap for bikes in 2024 and a car by 2026. Ather/Hero have a new expensive 450 ultra and.....
Many times vertical integration can backfire. For example, other companies can buy best batteries at best price from whoever makes them best, while you will be stuck with your own battery, even if its not competitive. IMO, one has to be really good at what they are doing and that is what brings the value. Just vertical integration does not necessarily bring any advantage by itself. For example, just look at Apple how they started. They did not start making chips. They started assembling computers and make better computers using existing off-the-shelf chips. Later, when they got better at it and then started making good money there, they went after mouse and then OS and then chips, in succession over multiple decades.
I love the matrix explanation you've presented in this video. But, the graph at 19:49 was confusing for me. As, it had nothing scooters and bike with a color transition and the bike wasn't required to be showcased. Overall, lovely video.
You could have added the recent article by ft and Reuters on OLA after sales service. It sucks currently. It's far from being reliability as Activa and often kills the point of having low maintenance electric vehicles. Also, entry of players like Honda, Suzuki or any Chinese two wheeler manufacturers would change the game. It has 2-4 years to improve, until the market hits back.
Decent job, you have done! Ola does not have the competence for OEM hence vertical integration, it is more to overcome their weakness than a competitive advantage. Other are they have to buckle up is dealer network. ICE is not really the ice that goes into the Whiskey of Bhavesh! 😂
A feedback as a supporter of your channel. I feel the research for this video is at a very high level. The problems you've quoted aren't problems for OLA alone. It's for the entire EV industry of India. No EV manufacturer has control over Raw materials for battery technology. A better analysis would have been to present how OLA is placed to solve these problems relative to their competitors. I feel that was missing.
One thing i understand is that this E mobility space (at least for now) is highly dependent on govt subsidies. Its very hard for these Co.s to reduce cost (also explained by founder of ather in nikhil kamath's podcast), Even for a good vertically intergrated Co. Like OLA its difficult. Either they have to reduce the cost or increase the TAM which is above 1L.
Hi. I would like to differ a little on one point. Even though right now, assuming 50% increase in conversation of total scooters into ev-scooters, the total representable number is still below the assumptions made by OLA, 2 points can change this scenario in the future (lets say 4-5 years): 1. EV 2-wheelers are becoming a trend among youngsters and even mid-40's personal, there is a high chance that this number will increase in near future. 2. Due to its vertical integration in most areas, OLA can sell their scooters in different parts of the world by controlling the cost and quality, thus giving a healthy competition to the Chinese players (similarly to what Hero did) Thank You!
Thanks for such a simplified explanation of Vertical integration, I got amazing ideas on how i can use the same concept in the context of my current company's products to pitch our corporate customers.
Very well explained case study. From my understanding mahor factor play role in India is PRICE. If anyone started selling 2 wheeler EV at price maximum 1 Lakh with or without subsidiary will be the winner. Thanks
You missed the basics , for vertical integration you need to have intense capex which comes with interest and amortization which will pull margins drastically. And this is in addition to the headache of managing non core activities.
@@pradhumnverma5485 bro profit is always calculated on CP Let suppose I bought a pen for 100 rs and sold it for 120 for my profit will be of 20% not of 16.67%
Currently OLA is definitely the king in 2 wheeler EV market in India. The only problem is lack of charging infrastructure and the rapidly evolving EV technology. In the next 5-10 years some of the big players like Honda, TVS, Bajaj etc can really step up their EV game with some ground breaking technical advancement or infrastructure leap and take over the market very quickly. Still lot of uncertainty in the EV market for OLA.
Sir, just like you tell the summary of this video in the last part of this video, similarly you should tell the summary of this video in the last part of the upcoming videos. By the way nice video sir 😊❤
The dominance has Maruti Suzuki,Hero , Honda , TVS in the Indian market to a great extent that easily they have a competitive advantage alongside vertical integration and mainly Monopoly in the Market. As Ganesh bhaiya mentioned, who will achieve under 1 lakh range scooter or bike along with three parameter quality price margin. They were dominating next EV market in India. In my view the battery is the essential part of the ev vehicle.All essential raw material for manufacturing a battery is important and must have been a vertical integration and strong supply chain, only who will able to dominate next EV generation.
I prefer Ather over ola. I own access 125 only. We are indian what we see is Feature, price, color, how much save, how much it gave. So I'll go with Ather
What I took away? 1. Ola has the best chance to do well in EV space among all domestic players due to vertical integration. 2. Things are dicey for all domestic players due to price sensitivity If EV has to find a foot hold in India, Ola needs to do well, or we will have some other domestic manufacturer who is actually sourcing most parts from China.
Didn't appreciate the last topic of recommendation to be skipped. Don't clickbait your way into promising an opinion or advice of whether to buy the IPO. Your content speaks for the teams efforts. Clickbaiting disrespects it. Rest of the video is great.
As per my perspective by watching the video and as student of business- The dominance has Maruti Suzuki,Hero , Honda , TVS in the Indian market to a great extent that easily they have a competitive advantage alongside vertical integration and mainly Monopoly in the Market. As Ganesh bhaiya mentioned, who will achieve under 1 lakh range scooter or bike along with three parameter quality price margin. They will be dominating the next EV market in India. In my view the battery is the essential part of the ev vehicle.All essential raw material for manufacturing a battery is important and must have been a vertical integration and strong supply chain, only who will be able to dominate the next EV generation.
Hello Ganesh Bhaiya, I've been a follower of your channel from the past 2 years and I love watching your case studies and the way you explain every topic, I really appreciate your work, but at the same time I would like you to be conscious of the people and their stuff that you promote on your channel, people like Sharan pass vague and ill-logical comments about professionals like CAs, and he, very confidently endorses his personal finance course. He says CAs only help with tax filling and not in tax planning, being completely unaware of the fact that CAs are one of the best professionals in the industry when it comes to taxes, be it individual tax or corporate tax. And It is always advisable to consult a professional when it comes to managing finance, instead of doing a personal finance course.
🎯 Key Takeaways for quick navigation:
00:12 Ola *Electric's IPO.*
00:40 Electric *vehicle market in India.*
01:09 Ola *Electric's financial losses.*
02:19 Considerations *for investing in Ola Electric.*
04:26 Importance *of vertical integration in EV business.*
08:51 Ola *Electric's vertical integration and manufacturing capacity.*
11:51 Control *over price, margins, and quality through vertical integration.*
19:04 EV *market segment and pricing challenges.*
21:23 Subsidies *and their impact on EV sales.*
23:26 Risks *for Ola Electric, including raw materials and scale.*
23:40 EV *success factors: Quality, Price, Margins.*
24:07 Ola's *strong subsidies.*
24:22 Struggle *to reach price point.*
24:35 Ola's *distribution challenge.*
24:49 Investment *advice disclaimer.*
Made with HARPA AI
Distribution channel not good because no dealership.
12:37 Ola acquired a European EV company Ethergo which designed what is now known as Ola S1. Sorry to say, but Ola acquired a design and made some improvements. They didn't invest in coming up with their own Charging port. Ather on the other hand started from scratch and designed their EV charging standard which is now the official EV charging standard for the country.
Ather as a product is not worth it I believe. Not comfortable to ride and sit.
Common charging port gives access to third parties charging stations. Like type C cables. It's better to bring common charging ports other than unique ports
@@rooftopmunda weird. Because it has more space than OLa
Why to reinvent wheel if you can buy technology to it at reasonable cost & grab first movers advantage & tap economies of scale though I concur that kaizen is very much important in technology of charging
This.
OLA has a great potential, but I have to say that the after-sale service of OLA is not up to the mark which is hampering the company's image to a huge extent.
That's why they are launching IPO because of lack of funds for the improvement of sale and services
Sir. Ola as a company has poor customer care service.
Even for their cab business.
So i dont expect them to improve it. They are tata motors of this industry 😅
The fact that they are raising the money to cover the losses is a big red flag. That's not the goal of IPO. See the successful IPO launches, they were already doing well and only needed the money to expand their operations. Their losses are mounting each year and their after sales and quality of bikes is highly questionable as well. Plus more seasoned and trusted bike brands are already in the market.
Worst service ever I have seen is of Ola electric
B
One important player you ignored and the one who to watch for is Chetak. Chetak(Bajaj) already has established vendors for raw materials and a wide network of distribution centers for sales. Since Bajaj is making 3 wheeler EVs, yulu bikes they could easily get better deals by bulk sourcing raw materials and staying profitable. Also they don't have to rely solely on government subsidies since Bajaj has "deep pockets" (the same words were used by Mr Rajiv Bajaj) and could fund their r&d and marketing for years. Adding to the fact that Bajaj is the biggest exporter of 2 wheelers in India and has extensive distribution centers across the globe, Chetak could make up the numbers for staying profitable. If they can come up with some exciting models, they have their ground set to dominate the sector.
So did Volkswagen and gm had deep pockets . But that didn't make them leader in electric vehicles as tesla
River is also one major player in this segment ...
@@mystoganmist813 because they were late to the party and their priority was on ICE. By that time Tesla already established supply chains and made a strong base. And all these European and American car companies cannot function profitably with plants at one location, they needed to set up manufacturing plants in Asia for obvious reasons inorder to be profitable. And for establishing these plants, they need the network of local vendors, distribution centers, talent etc. so they need huge investment for doing so. And the conversion to EV for then was not simple and could not be implemented swiftly like Byd.
Whereas in India it's still early days and big players like Bajaj, TVS and Hero are not lagging behind like GM or Volkswagen were. And all these companies also invested heavily in R&D for EVs and came up with products which are in the market. And of course not marketed heavily like ola. And India being one of the world's biggest 2W markets, there is a huge margin to grow. And being a 2w, it is comparatively easier to ship vehicles manufactured in one country all over the world, just like Bajaj and TVS are shipping to almost 70+ countries having production only in India. And it will take years or even decades for ola or any other startup to establish such a presence globally. And since the competition is heating up, if they have to produce volumes for being profitable, they have to look into overseas markets as well. So these companies established do in fact have a huge upper hand compared to startups.
Brands don't work themselves...
It's d men behind it....
but uit is over priced for it's range and [performance
Unlike competitors focused on assembly, Ola’s control over cell manufacturing secures their pricing and margins, giving them a sustainable advantage.
Other competitors also do cell manufacturing.
Still overvalued. 22x.
Cells form the core of a battery and currently, Ola uses Lithium-Nickel-Manganese-Cobalt-Oxide (NMC) cells. Sourced from Korea's LG Chem, the almost banana-shaped battery pack comprises 224 cells that are split into two clusters of 112 units each.
sahi bola bhai... EV ke naam par sab goli de rahe he company khol kar.
@hitesh6245
@@hynoor7254 Yes absolutely correct, people misunderstand battery assembling for cell manufacturing
i have driven my one year ola s1 pro to 20,000km , so for its very very good and i love it. i wish company will grow to worlds best.
Ganesh a lot of people on TH-cam claim that they are an educational channel but honestly most of it is infotainment. But yours is like a real classroom case study education! Wishing you more success ❤
While the initial investment for vertical integration may be significant, the long-term returns are poised to be exceptional.
Vertical integration is not a good idea for commodity parts. For example, Tata makes steel, and Suzuki does not. Cars use a lot of steel, but Suzuki makes way more cars than Tata.
Vertical integration only works for non-commodity parts. When was the last time you saw a Pizza Hut wheat farm
@@barryobrien1890vertical integration only gives a edge in margins, so that you can provide a better quality nothing else
5 years ago people used to raise eyebrows when the scooter used to cross the price of 80k. Now, that benchmark is 1 Lakh. So, in a few years this benchmark will breach 1.2 lakh and 1.5 lakh. If, EV manufacturers are able to keep the cost to 1.5 lakh in the next 4-5 years it's a game changer.
The player who will give best quality at lesser price than the benchmark will dominate the market easily
Bhavesh Aggarwal got shares of ola electric at INR 98,000 only. Even if ola electric got undersubscribed he will be at profit anyhow and he is the sole reason why I'm staying out from ola electric IPO.
He took the maximum amount of risk. So, he is getting the returns. I don't find anything wrong with this. But, I do agree that the valuation of the company is on the higher side after considering the financials of the company. So, steeper valuation, but nothing wrong with what Bavesh is doing.
₹92,500
You are saying the opposite. He is only selling 50% stake i.e. still 15-18% remaining. He is not running away anywhere and finally with a product rather than a service, its at the cusp of becoming big or going bust. Of course there is high risk, the upside is too big.
@@hrushikeshavachat900 taking maximum risks doesn't mean scamming retail investors if the valuation of company is that high then how he get the shares this cheap. I'm seriously at INR 92,500 and even when he started ola electric 2 years back there is no way valuation of company was that low at that time that he got shares at this low price.
@@soumyakantigiri he should leave for the betterment of the company he is the only reason why company will fall in the near future just look at the employee retention of ola it's 42% means out of 100 employee who join company 42 leaves within 1 year.
Absolutely, Ola’s vertical integration sets them apart in the EV realm, paving the way for unparalleled control and innovation.
Ather has better vertical integration and less debt. Quality is far more superior and after sales services are much better. Ola’s ipo is a debt reconciliation program for failed businesses that they’re into. They’ll never meet the scale and it’ll only hamper their sales. Better not invest.
Being a customer of Ola Electric, I might be biased but their parts quality and after sales service is pathetic.
Ather's service is also not so great.
Vertical integration is only present in papers bro . My last organisation i worked in used to supplies Electric motors for their scooter. Controller is procured from another supplier. Most important parts are being procured from vendor then where is vertical integration done 😂
Just visit an ola service center near u.i have purchased 1 month month back after 2 weeks its in service station.since now it's been 3 weeks since my ola is in service station no response from them.just visit nearest ola service evryone who is trying to buy. Ola
Why is Bhuban Bam in the thumbnail?? 😂
Click bait
He was in the advertisement of OLA scooters
He was in the advertisement of OLA scooters
He advertises for OLA Scooters.
He is chief motor transmission engineer of OLA
The 2-wheeler EV market in India is evolving rapidly, and Ola Electric’s entry has definitely stirred up the competition, creating more choices for consumers.
But is it better than other's , genuinely asking
Ola electric didn't provide dealerships so no service Centre across all the states
@@karankapoor2701It is
Please make more such videos so gullible newcomers can be more aware before investing
Rivian in the US is a cautionary tale to not be over valued and cause investors to lose half investment.
Even Tesla is. The valuation have no logic
One thing I believe Ola is missing is focus. They are trying to do everything which sounds impressive but can also backfire. Ather on the other hand seem more focused on what they want.
Ather would have launched a 3 lakh "premium" scooter right now if not for Ola coming into EV 2 Wheeler market. Ather is not focused on Scooters sales. They want to sell future batteries to others.
@@evthinkwhat do you mean future batteries?
Master class of finance with sharan is actually a 3-4hr long ad campaign for his 1% club. Not anything more than you find on TH-cam by following quality content creators. Please don't promote his content/products, he might ruin your name.
Yes 100% correct , after sales service is the key to sucess besides orher factors.
I owned an Ola S1 pro and so far ola has provided good after service to me , the quality issue is still there in my ola S1 pro, Hopefully ola will improved on this.
I hv ola s1 pro, purchased in april 2022, till date i not gone for services. I m happy with Ola S1 pro.
I learn more about economics and business in your channel than university that I have studied. Thank you so much.
Yes I would like to invest in Ola… promising, it has huge potential
Loved the last part where you summarised everything in 90 seconds, really helpful!!
Their strategic foresight to compete globally positions them as an Indian trailblazer in the electric vehicle industry.
I work in the EV manufacturing industry so I understand the risks and rewards associated with OLA IPO. OLA needs to work harder on its R&D as their product is plagued with the issue of spontaneous combustion due to thermal runaway in their battery. It might be due to poor quality materials used in the battery or a bug in their BMS software algorithm. In any case the customers do see these incidents pop up in the news feed every now and then causing hesitation in switching to E-Scooters. As we all know by now an investment of 1 lakh rupee is a considerable amount for the Indian household so people will not want to take risks with that kind of money.
But if OLA can somehow manoeuvre around this issue and are able to change their public image to safe and reliable product than they will definitely be successful in the market.
Yes ..strangely though they are the number one e2w by a huge margin in India. So much for expert opinions
Like you said, there are many ifs here which Ola needs to overcome. Personally I don't think Ola IPO is worth the risk.
@@barryobrien1890 it helps when you have strategically priced product kind of similar to what JIO did as per current market atandards if you manufacture e2w the overall cost you'll be paying will be around 1.2 lakh without subsidies but with the help of FAME 2 subsidies OLA managed to price the product nearer to 1 lakh as a result people swith9to ola at more ease.
But let us do a simple thought experiment let us say Ola launched its IPO and becomes majorly successful what do you think will happen if the news outlets cover that there is an issue with ola scooters.
It will be similar to what FORD faces in the 2010s they would have to call back their products from customers leading to a big downfall in their stock prices..
At the end of the day it takes a lot of things to go right for a company when it grows but if one single thing goes south it can lead to the downfall of the whole organisation...
Hii Ganesh! I am a consumer of your content from Madhya Pradesh and I request you to create a video on the problems of my state, the pros and cons and what are the best buisness opportunities to invest in. Also please include some best and worst decisions made by Shivaraj Singh's party and what the next cabinet should learn form it and how should we invest in our state in future.
It's not a political analysis channel
Hope you understand that
What is Bhuvan Bam doing in the thumbnail?😭
Btw great video ❤
😂😂 Bhai ai se apne aap ko BB ki baaana dia ..
The way you summarize and present a case study is indeed admirable! 💫⭐
We are happy to see Indian Automakers are growing rapidly🎉
Next Level Gyan diya hai bhai ne , dimag khul gaya 🤯
We Should Support Indian Brands
24.54 THATS TH REASON IM YOUR SUBSCRIBER SINCE U HAD 300 SUBSCRIBERS IN 2021 .....UR CREDIBILITY AND UR FOCUS IS ONLY BUSINESS CASE STUDIES ✅🔥🔥💥
OLA Electric vehicles Integration manufacturing system The OLA Giga factory in Tamilnadu The costs of Electric vehicles Rs 90K - 1Lakhs And The Electric charging point more over price margin and Quality The Raw materials from various places and competition between EV Vehicles The Dealership compared to TVS motor & Honda less than dealership The case Study OLA company By Think school 🏫 Kudos to Team 👏 Research works in detail
Bro calculation Thik Karo , Profit% = Profit/CP*100
(60/140)100
Don't Show Worng Calculation Sir
During the vertical integration explanation, the huge capital investment made to achieve it has been missed. Would have been better if told.
Keep posting about IPOs sir, no one can analyse & represent in depth data with every effecting factor of a company better than you
I’m a two wheeler user I have used Bajaj, Honda, KTM and today i do have OLA S1 the worst part is after sales. Ola service is worst I have ever seen, never faced such service issues with other brands, In Karnataka they say Bengaluru’s Indiranagar Ola service is the largest service centre but they don’t have enough tool kits nor technicians to fix the problems with Ola scooters and the same case with all other service center across India. To fix a minor issues with Ola scooters even after having an appointment you have to wait for 5-6days might go upto months.. Great service by Ola 👏
Bhai sahab, excellent and perfect editing ❤
Can't thank enough the team Think School for putting out such valuable & insightful piece of content after thoroughly researching, analyzing and structuring it in a way that all the viewers don't face even a small difficulty while going along with the flow of the video from start to end.....
I am thankful and proud of the work you - @ganesh Prasad and team through this podcast.
I saw your talk in TRS. Very inspired to know you and proud of all that you do.
Keep going and do more such data based informative videos. This is important for today's youth who base their opinion and decisions on few seconds of video.
I just taped to watch was because I saw your new thumbnail..... It was begging to watch it😊... Good job sir
You are very clear in teaching ... Its not a miracle u reach 10M soon ❤
One additional note you should have added in the video itself:
"If OLA electric can do vertical integration, all the other big players like TVS, Honda (who actually have deep pockets already & don't really need to rely on investments), can do vertical integration too. And these are the titans of the industry who actually know what needs to be done to make a two-wheeler successful. No way OLA electric can beat them being completely new in the industry, after all it is OLA, not Tesla.
Bhavish Aggarwal is smart enough to sell his narrative as being the Tesla of India - but it will just always be a narrative & not the Truth"
Hey Team Think School I've been a fan of your insightful financial contents. Your ability to break down complex topics is impressive. Could you please consider creating a video on the current Andhra Pradesh Pradesh financial position? Your expertise would be invaluable in helping the citizens of the state to understand and navigate the economic landscape. Looking forward to another enlightening video as the current media has totally confused everyone.
The indepth explanation always fascinates me. You get to learn so much about market, government subsidies, importance of vertical integration, the risks involved, the targets that are needed to be covered.
Outstanding case study Ganesh 💯🤝
Amazing case study I ever found. Explain each and every concept so simple and creative way. One of the most underrated channel till now. Many more miles to go Ganesh prashad ji and the team of think school.🎉😊
I am using chetak its aftersale service and the Scooter itself is great
Best ipo research analysis seen on TH-cam by far
Very helpful
1) product build quality
2)batter related heating, dry etc…
3) fast chargers stations ( customer expecting fast charges: 5 to 12 min ( full charge) ) … water proof
4) service
5) durability life
E - bike , scooter, car
Customer expecting
Ola electric is taking risk and trying to build battery factory which so far others have failed but we need to support. In the long run they will make it
Learnt what is vertical integration ... Great explanation.. had no clue about it but I'm clear now thanks Ganesh
This is tje best you tube knowledge base channel
Start watching at 3:40 when the intro and the promo ad finishes.
Ola will have some serious competition given Hero is increasing its stake in Ather. With Hero's vast distribution network and capital might, it would be difficult for Ola to complete.
Once again, a brilliantly researched and presented video, loved the summary part at the end. 😄🧿
So why is the Vida a flop and Ather should be number one given its first leader advantage. Seems like Ola is now the company to catch. Sales are consistently growing and they have a roadmap for bikes in 2024 and a car by 2026. Ather/Hero have a new expensive 450 ultra and.....
Many times vertical integration can backfire. For example, other companies can buy best batteries at best price from whoever makes them best, while you will be stuck with your own battery, even if its not competitive. IMO, one has to be really good at what they are doing and that is what brings the value. Just vertical integration does not necessarily bring any advantage by itself.
For example, just look at Apple how they started. They did not start making chips. They started assembling computers and make better computers using existing off-the-shelf chips. Later, when they got better at it and then started making good money there, they went after mouse and then OS and then chips, in succession over multiple decades.
I love the matrix explanation you've presented in this video. But, the graph at 19:49 was confusing for me. As, it had nothing scooters and bike with a color transition and the bike wasn't required to be showcased.
Overall, lovely video.
Your PPTs are more than awesome...It reminds of my old day when I used to work for Byjus as a content developer...
WOW what a case study ❤.
Please make a complete case study on Britannia, how this company evolved and how they got success. Thanks in advance
I learned the "Verticle integration" concept from this video.
Thank you for making this video.
It's really badly explained. Where are the Domino's and Pizza Hut wheat farms. He never explained why you don't vertically integrate commodities
@@barryobrien1890 How does fluctuation in wheat price effect these pizza sales.
You could have added the recent article by ft and Reuters on OLA after sales service. It sucks currently. It's far from being reliability as Activa and often kills the point of having low maintenance electric vehicles. Also, entry of players like Honda, Suzuki or any Chinese two wheeler manufacturers would change the game. It has 2-4 years to improve, until the market hits back.
Look I'm a believer in Bhavesh. Been using Ola for years and will file in the IPO. Moreover i have pre-registered for the Ola Scooter
Decent job, you have done!
Ola does not have the competence for OEM hence vertical integration, it is more to overcome their weakness than a competitive advantage.
Other are they have to buckle up is dealer network.
ICE is not really the ice that goes into the Whiskey of Bhavesh! 😂
A feedback as a supporter of your channel. I feel the research for this video is at a very high level. The problems you've quoted aren't problems for OLA alone. It's for the entire EV industry of India. No EV manufacturer has control over Raw materials for battery technology. A better analysis would have been to present how OLA is placed to solve these problems relative to their competitors. I feel that was missing.
Superb research and development team of creating quality content by Think School & Team 👍🏻
One thing i understand is that this E mobility space (at least for now) is highly dependent on govt subsidies. Its very hard for these Co.s to reduce cost (also explained by founder of ather in nikhil kamath's podcast), Even for a good vertically intergrated Co. Like OLA its difficult. Either they have to reduce the cost or increase the TAM which is above 1L.
If ola is not upto mark. Its competitors will takeover. Thats the beauty of capitailism, customers dictate who serves them better
Hi.
I would like to differ a little on one point. Even though right now, assuming 50% increase in conversation of total scooters into ev-scooters, the total representable number is still below the assumptions made by OLA, 2 points can change this scenario in the future (lets say 4-5 years):
1. EV 2-wheelers are becoming a trend among youngsters and even mid-40's personal, there is a high chance that this number will increase in near future.
2. Due to its vertical integration in most areas, OLA can sell their scooters in different parts of the world by controlling the cost and quality, thus giving a healthy competition to the Chinese players (similarly to what Hero did)
Thank You!
This is very very clear to me
Perfectly described case study helped a lot in my project and in learning to❤
21:00 OLA S1x+ available under 1Lakh
Kudos to your effort bruhh 👏
Thanks for such a simplified explanation of Vertical integration, I got amazing ideas on how i can use the same concept in the context of my current company's products to pitch our corporate customers.
Very well explained case study.
From my understanding mahor factor play role in India is PRICE.
If anyone started selling 2 wheeler EV at price maximum 1 Lakh with or without subsidiary will be the winner.
Thanks
You missed the basics , for vertical integration you need to have intense capex which comes with interest and amortization which will pull margins drastically. And this is in addition to the headache of managing non core activities.
Well Researched Video
I travel through ola cabs everyday to my office. it's cheaper than rapido and uber . I hope ola will be very successful
I will definitely invest in Ola just because of their bold vision.
Very well put to understand the COMPLEX AND HUGE REPORT .....💥🔥🔥🔥🔥🔥✅💯
Bro the example of vertical integration is really awesome but in 1st scenario profit is of - 42.85%
And in 2nd scenario it is of - 76.99%
😊
Profit percentage will be calculated on selling price (30% of 200Rs = 60Rs)
@@pradhumnverma5485 bro profit is always calculated on CP
Let suppose I bought a pen for 100 rs and sold it for 120 for my profit will be of 20% not of 16.67%
@@pradhumnverma5485esa kabse hone laga bhaya?
😂😂😂😂😂
@@ArjunThatai 😂😂😂
Bro what are you holding in your hand ?
The video is very informative and precise, absolutely amazing! One of my favourites!!!
7:10 The pizza company is getting 42.83% of profit not 30%. Since profit is 60rs on 140rs of CP
Currently OLA is definitely the king in 2 wheeler EV market in India. The only problem is lack of charging infrastructure and the rapidly evolving EV technology. In the next 5-10 years some of the big players like Honda, TVS, Bajaj etc can really step up their EV game with some ground breaking technical advancement or infrastructure leap and take over the market very quickly. Still lot of uncertainty in the EV market for OLA.
Sir, just like you tell the summary of this video in the last part of this video, similarly you should tell the summary of this video in the last part of the upcoming videos.
By the way nice video sir 😊❤
If we consider that Suzuki or Honda also enter the ev market , so do you think ola will sustain with vertical integration
The dominance has Maruti Suzuki,Hero , Honda , TVS in the Indian market to a great extent that easily they have a competitive advantage alongside vertical integration and mainly Monopoly in the Market.
As Ganesh bhaiya mentioned, who will achieve under 1 lakh range scooter or bike along with three parameter quality price margin. They were dominating next EV market in India.
In my view the battery is the essential part of the ev vehicle.All essential raw material for manufacturing a battery is important and must have been a vertical integration and strong supply chain, only who will able to dominate next EV generation.
2024 just started tho. Looking foreword byw
Eg at 7:10 is wrong 60÷140×100 hota hai profit percentage 🤦🏻♂️ 42%approx
Startups is all about company valuation & roadmap to reach IPO.
This video is class apart. Truly love your content Ganesh! Keep up the best work 🤜
Make a case study on EV Doctor and the impact it has on EV Industry.
Thank you Think School for such a deep research and imp insights. Please, do more, i am getting value of it.
I prefer Ather over ola. I own access 125 only.
We are indian what we see is Feature, price, color, how much save, how much it gave.
So I'll go with Ather
What I took away?
1. Ola has the best chance to do well in EV space among all domestic players due to vertical integration. 2. Things are dicey for all domestic players due to price sensitivity
If EV has to find a foot hold in India, Ola needs to do well, or we will have some other domestic manufacturer who is actually sourcing most parts from China.
superb vid from think school
Didn't appreciate the last topic of recommendation to be skipped. Don't clickbait your way into promising an opinion or advice of whether to buy the IPO. Your content speaks for the teams efforts. Clickbaiting disrespects it. Rest of the video is great.
As per my perspective by watching the video and as student of business-
The dominance has Maruti Suzuki,Hero , Honda , TVS in the Indian market to a great extent that easily they have a competitive advantage alongside vertical integration and mainly Monopoly in the Market.
As Ganesh bhaiya mentioned, who will achieve under 1 lakh range scooter or bike along with three parameter quality price margin. They will be dominating the next EV market in India.
In my view the battery is the essential part of the ev vehicle.All essential raw material for manufacturing a battery is important and must have been a vertical integration and strong supply chain, only who will be able to dominate the next EV generation.
Hello Ganesh Bhaiya, I've been a follower of your channel from the past 2 years and I love watching your case studies and the way you explain every topic, I really appreciate your work, but at the same time I would like you to be conscious of the people and their stuff that you promote on your channel, people like Sharan pass vague and ill-logical comments about professionals like CAs, and he, very confidently endorses his personal finance course. He says CAs only help with tax filling and not in tax planning, being completely unaware of the fact that CAs are one of the best professionals in the industry when it comes to taxes, be it individual tax or corporate tax. And It is always advisable to consult a professional when it comes to managing finance, instead of doing a personal finance course.
At 19:49 MASS MARKET MOTORCYCLES it should be > instead of < =
What about the interest cost in heavy investment in vertical integrations
Great insight, I request you to make a case study on travel companies in India.