After a few months of declining sales, Ola Electric has made a significant comeback in the electric two-wheeler market. The company’s market share surged to 30% in October, driven by festive season sales. Ola Electric sold 41,605 units in October, marking a remarkable 68% increase from 24,726 units in September, according to recent reports. While October’s market share is slightly lower than earlier months — 32% in August, 39% in July, and 49% in June — this recovery indicates renewed consumer interest.
Electric Two-Wheeler Market
The Indian electric two-wheeler market recorded 139,031 units sold in October 2024, with Ola Electric leading by selling 29,890 units. Other major players included TVS Motors with 28,188 units, Bajaj Auto with 15,984 units, Ather Energy with 7,309 units, and Hero MotoCorp with 7,137 units. Ola Electric’s performance shows its ability to maintain a competitive position among established brands.
Consumer Concerns
Ola Electric has been under scrutiny from the Central Consumer Protection Authority (CCPA) over complaints about consumer rights issues, alleged misleading advertising, and unfair practices. In response, Ola Electric claims to have resolved most after-sales issues raised with the CCPA. The Department of Consumer Affairs is also investigating to confirm these resolutions, indicating that the company is actively working on improving customer service and consumer relations.
Financial Performance
On the financial side, Ola Electric’s Q1 FY25 results showed a modest revenue increase of 2.8%, with earnings rising to Rs 1,644 crore from Rs 1,598 crore in Q4 FY24. The company also reduced its losses by 16.6%, totaling Rs 347 crore. However, Ola Electric’s stock has taken a hit, currently trading at Rs 80, down almost 50% from its peak in mid-August when it reached Rs 157.53. This drop reflects investor caution as the market awaits the company’s Q2 financial results.
Ola Ongoing Challenges
Ola Electric continues to navigate a landscape of fierce competition, consumer scrutiny, and stock market fluctuations. The recent festive season sales boost demonstrates strong demand for its electric scooters, though ongoing improvements in customer support and market strategy will be crucial as the company works to strengthen its position in the electric two-wheeler market.
