PC: NDTV Profit
Things have started looking a little ugly for the past three months for homegrown electric two-wheeler manufacturer Bengaluru -based Ola Electric as its market share shrinks. According to the latest available data, in September, the market share of Ola Electric decreased to 27% against 32% in August and it shows a considerable slump from 39% in the previous month.
The company attained an all-time high of 49% market share during the quarter that ended January 2025, a handsome milestone in its growth curve. But as Vahan data shows, sales performance in the very recent period has been on the decline, with Ola Electric selling just 23,965 units in September against 26,928 units in August and a very sharp drop from 40,814 units in July. This sales trough peaked at an 11-month low in unit sales during the month of September for the company.
Amid the aggressive market competition, the electric two-wheeler makers had considerably strong competition from the industry players: Bajaj Auto, TVS Motors, Ather Energy, and Hero MotoCorp. According to estimates, these four leaders together hold a market share of 21.27%, 20.26%, 14%, and 5% respectively. The decline in the market share of Ola Electric lines well with the report that was published recently by Goldman Sachs, where it said it was anticipated to break even at the EBITDA level by the fiscal year ending March 2027.
There are several reasons behind the sales and market share decrease, which may include complaining customers, hardware functionality that is not up to par, software problems, or even some problems in the operations. Most claims put forward that Ola Electric received about 80,000 complaints of customers monthly, and some of those require to be addressed early and solved by the company to regain pace with market activities.
Ola Electric saw revenue from operations grow just 2.8% to Rs 1,644 crore for Q1 FY25 over Rs 1,598 crore in the previous quarter. It did manage to bring down its loss by 16.6% at Rs 347 crore for Q1 FY25. Ola Electric’s revenues for the previous fiscal year 2024 were at Rs 5,010 crore with a loss of Rs 1,584 crore. Thus, the financial dynamics and performance trajectory of the company are under concern.
The share of Ola Electric has fluctuated since it was listed on the stock exchange in early August and touched the record sub Rs 100 for the first time since its IPO. The shares of the company are currently trading at a price of around Rs 102. This is a market sentiment and investor confidence that the company holds high prospects for growth and strength in operations as it withstands challenges in the electric vehicle industry.
