Industry set to witness Shared Ownerships as Fleet Giants Ola, Mahindra Join Hands
Ola and Mahindra have stuck a deal recently. The two fleet giants have come together and are ready to supply 40,000 cars in two years, generating a business of Rs 2,600 crore for the Mahindra Group. Though, the section of the industry views shared mobility as a threat that could impact the future growth, firms such as Mahindra & Mahindra and Tata believe that they have devised a strategy that would help them build volumes.
According to Ola, the company feels that the tie up between the two has the potential to scrape out the surface, to easily realize the full potential. The Mahindra Ola tie up plans to have at least 5 million cars in the next five years. “The mobility needs of the Indian industry are unique, and shared mobility will increase the percentage of car ownership in India,” says Bhavish Aggarwal, CEO of Ola cabs.
Besides, Mahindra has also come up with an initiative to support driver education and training related to the electronic vehicles. The company also plans to upsurge its production of electronic vehicles from 100 per month to 1,000 per month in the coming six months. Also, it talks about bridging this gap by further quoting “that it want its production to rise to 5,000 vehicles per month by 2019.”
While the overall passenger market grew only by 5-7% in the last five years, the major factor of recent growth has been the app driven technology. With Ola alone adding half a million cars promoting shared mobility, it has also influenced 90% of the owners to come up with their new cars.
The share of fleet market in the overall passengers vehicles has grown from 2-3% in the last five years to 10 – 12%. Moreover, car makers such as Maruti Suzuki, Hyundai etc., are coming up with specific modifications for the cab market. Surely, the Mahindra Ola tie up is ready to take shared ownerships to the next level.