Ola Electric shares jump 5% to hit upper circuit: Key factors driving today’s rally

Further, according to media reports, Ola Electric is likely to enter the energy storage market, which is expected to reach over $30 billion by 2030.

News agency PTI reported Chairman and Managing Director Bhavish Aggarwal has hinted at a major announcement, suggesting the company's entry into the segment.

In a tweet, Aggarwal stated that power in India is transitioning "from utility to deep tech – intelligent, portable, and personal", signalling a potential shift beyond the company's core electric vehicle business.

Industry sources speculate the announcement could involve Battery Energy Storage Systems (BESS) for homes and businesses, leveraging Ola's existing 4680 Bharat Cell technology from its Tamil Nadu Gigafactory.

The timing aligns with growing demand for distributed energy solutions.

If Ola is indeed entering the BESS market, the company would benefit from existing infrastructure that reduces traditional entry barriers.

Its 5 GWh Gigafactory capacity could be repurposed for storage applications without significant capital expenditure, while the nationwide network of Ola Electric stores could serve as ready distribution points for residential and commercial clients.

This asset-light expansion model would allow faster market entry compared to building dedicated BESS infrastructure.

The Indian energy storage sector, while nascent, presents significant opportunities for early movers.

Ola's potential entry would come with distinct advantages: domestic manufacturing capability at a time when the government is prioritising local production.

On October 6, Ola Electric said it has become the first two-wheeler electric vehicle (EV) manufacturer to receive government certification for its in-house developed rare-earth-free ferrite motor.

The certification has been granted by the Global Automotive Research Centre, Tamil Nadu, after Ola Electric’s ferrite motor underwent performance verification and mandatory motor power tests as per AIS 041 that is notified by the Ministry of Road Transport, Government of India.

AIS 041 is an Automotive Industry Standard (AIS) issued by the Automotive Research Association of India under the Ministry of Road Transport and Highways.

The tests showed that the company's in-house developed ferrite motor's performance matched that of the motors with rare-earth permanent magnet motors in terms of net power for 7 kW and 11 kW variants, the Bengaluru-based company said.

In the last five trading sessions, shares of Ola have climbed over 3%, while for a month’s time, they have lost nearly 13%. Over a six-month period, the stock has rallied 5%.

Since the beginning of the year, it has tumbled almost 39%. Its market capitalisation stands at ₹23,267.13 crore.