CosmicTaco

Ola Electric's Cost of Imports from China Surges in FY24

CosmicTaco · 2024-07-30T16:12:07.518426+05:30

- Ola Electric, preparing for its IPO, saw a significant rise in import costs from China in FY24, despite receiving Indian government incentives for local manufacturing. - The company's Red Herring Prospectus reveals that imports from China accounted for 37% of total material costs in FY24, up from 19% the previous year, underscoring its reliance on Chinese suppliers. - Total material costs for Ola Electric reached Rs 4,390 crore, with Rs 1,624 crore coming from Chinese imports, highlighting a 75% increase from FY23. - The surge in imports is attributed to increased production capacity and the need for essential components like lithium-ion cells and electronic circuits, sourced from China and other countries. - Ola Electric aims to reduce import dependence by increasing factory localization, but the EV sector's reliance on China for key raw materials like lithium remains a critical issue. Source: Moneycontrol

Ola Electric, preparing for its IPO, saw a significant rise in import costs from China in FY24, despite receiving Indian government incentives for local manufacturing.
The company's Red Herring Prospectus reveals that imports from China accounted for 37% of total material costs in FY24, up from 19% the previous year, underscoring its reliance on Chinese suppliers.
Total material costs for Ola Electric reached Rs 4,390 crore, with Rs 1,624 crore coming from Chinese imports, highlighting a 75% increase from FY23.
The surge in imports is attributed to increased production capacity and the need for essential components like lithium-ion cells and electronic circuits, sourced from China and other countries.
Ola Electric aims to reduce import dependence by increasing factory localization, but the EV sector's reliance on China for key raw materials like lithium remains a critical issue.

Source: Moneycontrol