Ola Electric gets govt nod for rare-earth-free ferrite motor; here's how stock moved

Pure-play electric vehicle (EV) manufacturer Ola Electric Mobility Ltd has received government certification for its indigenously developed rare-earth-free ferrite motor. This makes it the first two-wheeler EV maker in the country to achieve this milestone, the company stated in a BSE filing.

The certification was granted by the Global Automotive Research Centre (GARC), Tamil Nadu, after the ferrite motor underwent a series of performance verification and motor power tests under AIS 041 standards, notified by the Ministry of Road Transport and Highways (MoRTH).

According to Ola Electric, the tests confirmed that its ferrite motor delivers net power comparable to rare-earth permanent magnet motors in both 7kW and 11kW variants. The company said the motor offers equivalent efficiency, performance and durability while reducing costs and mitigating supply chain risks.

Ola Electric first unveiled the ferrite motor during its annual 'Sankalp 2025' event in August this year. Following the certification, the company plans to integrate the ferrite motor across its product portfolio. Ola said the move aligns with its goal to enhance performance, affordability and sustainability across its range of electric scooters and motorcycles.

On the stock-specific front, Ola Electric was last seen trading 1.45 per cent lower at Rs 53.19. At this price, the shares have cracked 38.32 per cent on a year-to-date (YTD) basis.

Technically, the scrip traded lower than the 5-day, 10-, 20-, 30-day and 200-day simple moving averages (SMAs) but higher than the 50-day, 100-day and 150-day SMAs. Its 14-day relative strength index (RSI) came at 53.79. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a negative standalone/consolidated price-to-earnings (P/E) ratio of 530/9.92 against a price-to-book (P/B) value of 2.12. Earnings per share (EPS) stood at (-)0.10/5.34 with a return on equity (RoE) of (-)0.41. According to Trendlyne data, Ola Electric has a one-year beta of 1.4, indicating high volatility.

Founded in 2017, Ola Electric manufactures electric two-wheelers and components such as battery packs, motors and frames at its Ola Futurefactory. As of June 2025, promoters held a 36.78 per cent stake in the company.