Okaya EV MD Anshul Gupta reveals company's future strategy, says not in a price war with Ola

Okaya has recently launched a new premium brand, Ferrato, under which it introduced its first electric bike, the Disruptor, priced at INR 1.59 lakh. Okaya is targeting a niche, premium segment, Anshul Gupta, Managing Director of Okaya EV, told ET on the sidelines of the bike's launch last week.

Gupta also discussed the brand's future plans, FAME subsidy, and why it is not engaged in a price war with Ola. Here's an edited excerpt of the interview.

Why an electric bike, and why now?
The bike segment remains largely untouched, successfully. Due to certain challenges, people have been hesitant. We took up e-motorcycles as a flanking strategy rather than attacking head-on in a segment with a lot of competition regarding pricing and features. So, we wanted to create a premium flagship brand. Thus, we introduced the 'Disruptor' as a product targeting that niche segment and then gradually working our way into the core commuter market.

Why a new brand?
There is a certain notion attached to Okaya as a brand, and it was difficult to launch a premium product. We wanted to create an experience of a premium product, which prompted us to launch the brand.

How much disruption are you expecting, considering the falling market share of Okaya?
Okaya has lost some market share in the high-speed segment, but in the low-speed segment, we have seen gains, although unfortunately, those numbers don't get counted. But we are not here for rankings. In that context, our numbers are fairly constant. However, the model mix has changed over time predominantly due to changes in FAME subsidy, which led to our pricing going haywire. That's why we had to redefine our product strategy, hence the Disruptor.

When we speak about losing ranking in the high-speed segment, we believe it's a marathon. While we managed to sprint, we have to keep ourselves in line with the marathon as well.

We have made mistakes in the past, and we are trying to cover up for them. We are working on network penetration with our partners because availability is one of the foremost drivers for people. The second one is the spare part service, and having component manufacturing in-house gives us a best-in-class service to consumers.

How is Okaya keeping pricing intact after the reduction in FAME subsidy?
Since we are family-oriented, we have stringent budget timelines. And we work like a startup, so we have kept our costs pretty much the same. While our fixed costs remain the same, we try to optimize our processes to enhance the end consumer experience.

We are profitable, but the last financial year was difficult. We are not losing money per scooter per se. It is a game of volume. This year is going to be interesting because we are seeing greater penetration in Tier 2 and 3 cities. Our market penetration is going to increase with new products and segments.

Are you in a price war with Ola?
There are people who choose us, and we want to serve those people rather than serve everybody, which will bleed us. True to our brand offering, we are trying to keep our prices the same rather than engage in a price war, which would be unsustainable for us.

Do you expect the new government to come out with a new FAME scheme?
Subsidies are add-ons and are beneficial. There was a decrease in volume after the subsidies reduced. Every time subsidies decrease, there is a little bit of confusion in the market, and then it (sales) bounces back. So, I feel the market has understood that. The subsidies help the end consumer tremendously, but the business model has to stand as the government also wishes. I agree with the government that the industry has to stand on its feet. We as a nation can't keep putting money from the taxpayers' pocket. It will be great if FAME 3 comes in. Without subsidies, the industry may face some volume challenges but we as a manufacturer have to be ready for both. If subsidies come, then it will be a tailwind for the airplane.

How should the EV industry convince consumers on resale value?
Consumers who are buying EVs have very strong reasons. If you calculate the per km average spending in case of ICE vehicles and EVs for 2-3 years, the vehicle itself would give an ROI (Return on Investment) in two years. So, the more you sweat, the more ROI you get. But there are people who are going to ask for more from the vehicle, and as a manufacturer, we are exploring how we can add value to out-of-warranty and refurbished vehicles to give end-users more ROI.

Your views on uniform EV chargers.
The government has standardized chargers for four-wheelers like e-buses where the government's capex is going in. So they have standardized it. The three-wheeler segment is also seeing some standardization. The government has set up committees, but some OEMs have proprietary technology - some are not open to sharing it. As an OEM, we will welcome if the government standardizes it - it would be great for everybody. But the other thing is that we can opt for is having some sort of workability.