Ola Electric Struggles in the Electric Two-Wheeler Market

Ola Electric has faced significant challenges, slipping out of the top five electric two-wheeler manufacturers in February. The company reported a staggering 47% decrease in sales month-on-month, resulting in its market share dipping below 4%. In the meantime, TVS Motor remains firmly in the lead.

Market Overview

Data from Vahan indicates a general downturn in the electric two-wheeler sector, which saw a decrease of over 9% in February. The total number of registrations stood at 1,11,680 units for the month. Despite this decline, TVS Motor Company managed to hold onto a substantial market share of 28.3%, with 31,600 units registered.

Other Key Players

Bajaj Auto reported its sales figures at 25,323 units for February, showing a slight drop compared to 25,717 units in November. Nevertheless, its market share increased to 22.67%. Ather Energy maintained the third position despite a 7% month-on-month reduction in registrations, falling from 22,130 units in January to 20,581 units. This led Ather to hold an 18.43% market share, and the company’s current market capitalisation is approximately Rs 27,150 crore (around $3 billion).

Hero MotoCorp also kept its fourth position, despite experiencing a 6.26% month-on-month decline in sales, registering 12,512 units and capturing an 11.2% market share.

Ola Electric’s Decline

In February, Ola Electric’s sales plummeted to 3,968 units, reflecting a month-on-month decrease of over 47%. This decline has resulted in the company exiting the top five rankings, with its market share falling to 3.55%. Once a leading name with more than 35% market share in 2024, Ola Electric has seen a notable decrease in its status.

Current Market Position

On Friday, Ola Electric’s shares closed at Rs 25.25, and the company’s market capitalisation now stands at Rs 11,137 crore ($1.23 billion).

Ola Electric’s struggles have opened opportunities for Greaves Electric Mobility to join the ranks of the top five electric two-wheeler producers. Despite a month-on-month drop of 11.55% in sales, Greaves Electric achieved a market share of 4.23% this month.

Other Market Players

The companies BGauss, River Mobility, and e-Sprinto retained their standings at seventh, eighth, and ninth places, respectively, although their sales experienced declines of 2.8%, 13.8%, and 42.15% month-on-month.

Additionally, Simple Energy entered the top ten electric two-wheeler manufacturers, replacing Pure EV, with a substantial increase in registrations of over 45% during the month.