Electric Two-Wheeler Network Expansion Strategies

Electric two-wheeler manufacturers Ather Energy Limited and Ola Electric are adopting differing strategies for network expansion, even as their most recent financial results show significant divergence. Ather has recently announced an expansion in its service network to 500 locations, nearly doubling from 277 in FY25. This expansion is aligned with its retail presence, having operated 600 experience centres as of December 2025, with plans to increase this number to 700 by FY26.

In contrast, Ola Electric is decreasing its physical retail footprint to approximately 550 stores. Previously, the company reduced its outlets to around 700, and this latest decision marks an additional reduction. Initially, Ola had set ambitious plans to grow its network to 4,000 stores across the country.

This contrasting approach arises amid markedly different performances in Q3 FY26. Ather announced a revenue of Rs 954 crore during the quarter, managing to cut losses by 57%. Conversely, Ola Electric experienced a 55% drop in revenue, reporting Rs 470 crore in Q3 FY26, although it managed to reduce losses slightly through stringent cost control measures.

Monthly sales trends further elucidate the differences between the two companies. In February 2026, Ather achieved 20,581 vehicle registrations, capturing an 18.43% market share and solidifying its position as one of the leading electric two-wheeler manufacturers. In comparison, Ola Electric recorded only 3,968 registrations in the same month, leading to a market share decrease to 3.55%, which has caused it to fall out of the top five competitors in the market.

These recent strategies reveal contrasting approaches to network development. Ather is focusing on enhancing its service and retail infrastructure, while Ola Electric is consolidating its store presence, reducing its numbers from around 700 to 550 outlets, deviating from its earlier goal of establishing a much larger network.

Recently, Ola Electric’s shares reached an all-time low, with a current market cap of Rs 10,400.74 crore ($1.12 billion). Meanwhile, Ather Energy has a market cap of Rs 27,760.51 crore ($3.00 billion).