Ola Electric drops to third spot in EV two-wheeler market
NEW DELHI: Ola Electric dropped to the third position in India's electric two-wheeler market in May, losing its lead to legacy automakers TVS Motor and Bajaj Auto amid a broader sales slowdown in the sector.
Once commanding more than half the market just over a year ago, the Bhavish Aggarwal-led company saw its share drop to 20% in the first 26 days of May, down from 22.1% in April, according to the government's Vahan portal.
Ola Electric recorded 15,221 vehicle registrations during this period, a sharp 60% fall from 37,388 units sold in May 2024.
In comparison, TVS Motor and Bajaj Auto gained ground, with market shares rising to 25% and 22.6% respectively, despite slight volume dips, the Economic Times reported.
Ather Energy, another key player in the space, also saw a decline, with market share slipping to 13.1% in May from 14.9% the previous month.
The decline adds to Ola Electric's growing list of challenges.
The company is under regulatory scrutiny over concerns around sales reporting, vehicle quality, and missing trade certificates at some dealerships. It also missed sales targets laid out by CEO Aggarwal, who had projected 50,000 units per month as a breakeven point for the auto business.
by Taboola
by Taboola
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In a bid to stabilize finances, the company's board recently approved raising up to Rs 1,700 crore through non-convertible debentures and other debt instruments, its first fundraising since going public in August 2024.
Earlier on Tuesday, its shares closed at Rs 52.49 on the BSE, significantly below the IPO price of Rs 76.
Meanwhile, Ola has begun deliveries of its first electric motorcycle, the Roadster X, which comes in two variants and offers multiple battery configurations.
Financially, the company continues to struggle. In the October–December 2024 quarter, its net loss widened by 50% year-on-year to Rs564 crore, while operating revenue fell 19%. The company has yet to release its financials for the final quarter of FY25.
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