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Key Points

Ola Electric experienced a significant slowdown in May, falling to the third position in the electric two-wheeler market. This drop comes as TVS Motor and Bajaj Auto reported robust sales growth, capturing 24% and 22% market shares, respectively. Factors such as increased competition, uncertain subsidies, and inventory corrections contributed to Ola's decline. The company faces challenges as they strategize to regain momentum in the competitive electric scooter market.

Key Points: Ola Electric Trails as TVS Bajaj Surge in May E2W Sales

  • Ola Electric saw 51% sales drop in May falling to third place
  • TVS Motor led the market with 24% share and 107% growth
  • Bajaj Auto followed with 22% share and 135% growth
  • Aggressive competition and subsidy cuts challenge Ola's market strategy
2 min read

Ola Electric sees 51 pc slowdown in electric 2W sales in May, drops to 3rd spot

Ola Electric slips to third in May E2W sales with a 51% dip, trailing TVS and Bajaj.

"Ola Electric's market share dropped to 18%, despite holding top position last year. - Industry Analyst"

New Delhi, June 1

Ola Electric saw a 51 per cent (year-on-year) slowdown in electric two-wheeler sales to 18,499 units in May, dropping to the third position behind rivals TVS Motor and Bajaj Auto.

May saw a strong performance in the electric two-wheeler (E2W) segment, with retail sales reaching 100,266 units, according to the government’s Vahan data.

TVS Motor led with selling 24,560 units, registering a 107 per cent year-on-year (YoY) growth and securing 24 per cent market share in May.

Bajaj Auto clocked the sale of 21,770 units, registering a 135 per cent YoY growth and 22 per cent market share at the second position, the Vahan data showed.

Bhavish Aggarwal-led Ola Electric registered an 18 per cent market share last month at the third spot.

Ather Energy, which went public last month, sold 12,840 units and captured 13 per cent share of the market.

Ola Electric's financial performance took a sharp beating in the fourth quarter (Q4) of FY25, as the electric vehicle maker reported a steep drop in revenue and a twofold increase in net losses on a year-on-year (YoY) basis.

The company posted a net loss of Rs 870 crore for the January–March quarter (Q4), up from Rs 416 crore in the same quarter previous fiscal (Q4 FY24), according to its stock exchange filing.

Revenue from operations fell significantly to Rs 611 crore in Q4 FY25, marking a 61.8 per cent decline from Rs 1,598 crore a year ago.

This is one of the company’s worst quarterly revenue performances since it began commercial deliveries of its electric two-wheelers in late 2021. The drop comes amid rising competition in the electric scooter market, regulatory uncertainty around government subsidies, and inventory correction across dealerships.

For the full year FY25, Ola Electric’s revenue also fell to Rs 4,645 crore, down from Rs 5,126 crore in FY24.

Ather Energy also reported a net loss of Rs 234.40 crore in the fourth quarter of the last financial year (FY25), widened by 18.5 per cent from Rs 197.8 crore net loss in Q3 (quarter-on-quarter). Total expenses rose to Rs 922 crore in Q4, 8.7 per cent up on a quarterly basis and 12.6 per cent year-on-year.

The company's revenue from operations went up 29 per cent to Rs 676 crore in Q4, from Rs 523.4 crore in the year-ago period.

- IANS

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Reader Comments

R
Rahul K.
Ola was too focused on marketing hype rather than product quality. Their scooters have too many issues - from software glitches to poor service centers. TVS and Bajaj have decades of experience in building reliable vehicles. This was bound to happen! 🤷‍♂️
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Priya M.
As an Ola S1 Pro owner, I'm disappointed but not surprised. Their after-sales service is terrible. Had to wait 3 weeks for a simple spare part. Meanwhile, my friend's TVS iQube gets serviced within 2 days. Hope Ola learns from this wake-up call.
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Arjun S.
The EV market is heating up! Good to see Indian companies competing strongly. Bajaj's Chetak is really solid and TVS has great distribution network. Ola needs to focus on fundamentals rather than just flashy features.
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Sneha R.
Government should continue FAME subsidies for at least 2 more years. Many middle-class families want to switch to EVs but the prices are still high compared to petrol vehicles. This slowdown affects our green goals.
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Vikram J.
Interesting how traditional automakers are beating the startups at their own game. Shows that manufacturing experience matters! Ola should partner with an established player rather than trying to do everything themselves.
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Neha P.
I was about to book an Ola scooter last month but changed my mind after reading so many negative reviews online. Ended up going with Ather - slightly expensive but worth the peace of mind. Quality over hype any day!
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Karan D.

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