Okinawa Autotech Faces Struggles in Electric Two-Wheeler Market
Okinawa Autotech, a once-renowned name in India’s electric two-wheeler sector, is currently grappling with a significant decline, having experienced an 84% drop in revenue in FY24. The company reported a loss of Rs 50 crore, highlighting a considerable setback for the homegrown electric vehicle brand. Okinawa’s operational revenue plummeted to Rs 182 crore in FY24, down from Rs 1,144 crore in FY23, as indicated by its regulatory filing obtained from the Registrar of Companies (RoC).
About Okinawa Autotech and Product Line
Founded in 2015, Okinawa Autotech is an electric two-wheeler manufacturer recognised for models such as the PraisePro, iPraise+, Okhi-90, Ridge+, Lite, and R3. The sale of electric two-wheelers constituted the sole revenue stream for the Gurugram-based company.
Okinawa witnessed a dramatic drop in sales from 95,931 units in FY23 to just 20,873 units in FY24. This decline resulted in its market share decreasing from 13.17% to 2.20%. In the current fiscal year (FY25), the company has only sold 3,548 units, representing a mere 0.31% of the market.
Financial Overview and Cost Structures
For Okinawa, the cost of procurement constituted 68% of total expenses. This cost was significantly reduced, showing an 80% decrease to Rs 171 crore in FY24 from Rs 859 crore in FY23. Employee benefits also saw a reduction, declining by 16% to Rs 26 crore in FY24. Moreover, advertising expenses dropped dramatically by 88% to Rs 4 crore in FY24. Overall costs, including rent, warranty claims, freight, and additional overheads, fell to Rs 251 crore in FY24 from Rs 991 crore in FY23.
Impact of Scaling Down Operations
The substantial contraction in operations resulted in Okinawa reporting a loss of Rs 52 crore in FY24, a stark contrast to the Rs 166 crore EBITDA recorded in FY23. The company’s Return on Capital Employed (ROCE) and EBITDA margins worsened to -102% and -25.8%, respectively. At the unit level, it spent Rs 1.38 to generate a single rupee of income in FY24. By the end of FY24, Okinawa’s total current assets were valued at Rs 276 crore.
Competitive Landscape
Okinawa faces fierce competition from Ola Electric, which reported Rs 1,045 crore in revenue for Q3 FY25, and Ather, which has filed its Draft Red Herring Prospectus (DRHP) to raise Rs 3,100 crore through an initial public offering (IPO). In the traditional two-wheeler segment, established brands like Bajaj, Hero, and TVS Electric pose additional competition.
Challenges Leading to Decline
The downturn in Okinawa’s fortunes can be attributed to numerous challenges, such as fire safety concerns, stricter regulations, a deterioration of consumer trust, and rising competition from better-prepared rivals. Previously viewed as a leader in the electric vehicle market, the company is now navigating the hard realities of an evolving sector, where ongoing success hinges on innovation, regulatory compliance, and consistent performance.