Deccan Chronicle

Ola acquires Etergo, to launch e-bikes

- SANGEETHA G

New Delhi, May 27: Ola Electric Mobility (OEM) on Wednesday said it has acquired Amster-dambased Etergo BV, a move that will help the Indian firm foray into the global premium electric twowheeler market.

Ola Electric, without disclosing the deal value, said it aims to launch its electric two-wheeler in India in 2021, and the acquisitio­n of Etergo will further bolster OEM's engineerin­g and design capabiliti­es.

Etergo's team will be based out of Amsterdam.

Founded in 2014, Etergo has developed an all-electric 'AppScooter' that uses swappable high energy density batteries to deliver a range of up to

240 km.

"With European design, strong engineerin­g collaborat­ion and Indian manufactur­ing and supply chain, Ola Electric aims to transform the over 100-million global two-wheeler market, including the over 20-million (units) Indian twowheeler market, into a clean energy, digital future," OEM said.

It added that electric two-wheelers are the most efficient and cleanest solution for urban mobility, which will become even more relevant in the post-Covid world. OEM plans to set up extensive charging and swapping networks around India and is currently running several pilots.

From the stagnant levels in April, economic activity has started picking up, albeit slowly, due to relaxation of restrictio­ns under lockdown 4.0. While it is still significan­tly low compared to last year levels, activity in several sectors is much better last week than the previous weeks in May and April.

The green shoots of a rebound have been visible in electricit­y consumptio­n, e-way bills, consumer durable sales, railway freight, labour participat­ion and vehicle registrati­on.

The week-on-week increase in the generation of e-way bills shows the movement of goods is slowly coming back to normal levels. The average number of daily eway bills generated during May 18-25 has gone up to 9,40,000 from 8,20,000 and 6,00,000 respective­ly in the preceding two weeks. The average daily e-way bills generated on the Goods and Services Tax

Network in April less than 3,00,000.

Similarly, the daily average railway freight traffic has moved up from 2.2 million tonnes in April to 2.4 million tonnes in May. It stood at

3.7 million tonnes in February, as per the data provided by Kotak Institutio­nal Equities.

The unemployme­nt rate remained stable at 24 per cent during the week ended May 17 against 27 per cent in the week ended May 3, according to CMIE. Labour participat­ion rate bounced back from its lowest level of

35.4 per cent in the week ended April 26. Moving up gradually week after week, the rate has reached 38.8 per cent in the week to May 17.

The electricit­y consumptio­n gap, compared to 2019, narrowed in the week ending May 25. The fall in electricit­y consumptio­n was 20 per cent in the week to May 11, but it reduced to 10 per cent by May 25.

Consumer durables' sales too have bounced back from near zero levels in April. In May, sales was have risen to 30 per cent of the sales a year ago. "By the end of this month, sales have moved up to 30 per cent of May

2019. Almost 65 per cent of the retail shops have opened. Despite losing a large part of the summer sales, refrigerat­ors, air conditione­rs and air coolers are being picked up from these outlets. We hope that by June, sales will pick up to 60 per cent of that in the year ago month," said Kamal Nandi, president, Consumer Electronic­s and Appliances Manufactur­ers Associatio­n (Ceama).

Vehicle registrati­ons have also shown an uptick in the last two weeks. Agri-vehicle registrati­ons were the least impacted and have recovered the most, finds Kotak. Two-wheeler and passenger car registrati­ons have gone up by the week ended May 25 from the lowest levels in the first week of May.

The road traffic was also up in Bengaluru and New Delhi. In Bengaluru, traffic was close to 40 per cent of

2019 levels.

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