Ola Electric and Ather Energy reported contrasting results for the quarter ended June 30, 2024, with Ola Electric seeing a sharp decline in sales, while Ather Energy recorded growth.

Ola Electric, an electric vehicle manufacturer based in India, reported revenue of 828 crore rupee (US$99.76 million) for the quarter, a 50% drop from the previous year, with vehicle sales falling to 58,600 units from 108,412.

Ather Energy, also an India-based EV maker, reported revenue from operations rising 1.8x (80%) to 644.6 crore rupee (US$73.9 million), selling 41,037 units compared to 16,515 a year earlier.

Ola Electric’s net loss widened to 428 crore rupee (US$48.84 million), while Ather Energy narrowed its losses to Rs 178.2 crore.

Ola Electric’s cell manufacturing unit generated 3 crore rupee (US$342,300) in revenue but posted an EBITDA loss of 43 crore rupee (US$4.91 million).

Both companies face challenges from a rare earth magnet supply bottleneck, with Ather’s CEO warning of possible short production delays in the next quarter, and Ola Electric developing alternate sourcing strategies and new motor technology.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Supply chain resilience separates winners during rare earth crisis

The rare earth magnet shortage affecting India’s EV industry reveals how strategic sourcing decisions made years ago now determine which companies can maintain production.

China’s export restrictions led to a 51% drop in rare earth magnet exports in April 2025, with India experiencing a 78% decline in imports from China 1. This crisis particularly impacts electric vehicles, which require significantly more rare earth magnets than traditional vehicles 2.

Ola Electric’s early investment in supply chain diversification and magnet-free motor technology appears prescient, as the company reports having “unique solutions” and alternate suppliers to avoid production interruptions [original article]. Meanwhile, Ather Energy expects production delays of up to one week in Q2, demonstrating the vulnerability of companies relying on traditional supply chains [original article].

The crisis highlights how geopolitical tensions can quickly transform operational advantages, with companies that previously focused on cost optimization now facing production halts due to supply dependencies 3.

2️⃣ Vertical integration gambles carry high stakes in capital-intensive industries

Ola Electric’s cell manufacturing bet illustrates the double-edged nature of vertical integration in emerging technologies, where early losses can be massive but potential long-term advantages are substantial.

The company’s cell division generated only Rs 3 crore in revenue while losing Rs 43 crore in Q1, producing just 11,744 cells from a planned 5GWh capacity [original article]. This represents a staggering -1,579% EBITDA margin, highlighting the cash burn during scaling phases.

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