Ola Electric struggles to maintain 2024 momentum as rivals speed ahead
According to Vahan data, Ola Electric’s sales have halved in the first seven months of this year compared to the previous year. Meanwhile, its peers Ather Energy, Bajaj Auto, and TVS Motor have stepped in to capture a larger share of the market.
Ola Electric is struggling to reel in demand for its electric two-wheelers compared to last year, as the EV maker sees sales for its vehicles halve in the first seven months of this year compared to the year-ago period.
According to Vahan data, the Bhavish Aggarwal-led company has managed to sell only 1,31,785 units year-to-date, compared to 2,70,347 units in the year-ago period.
Meanwhile, rivals, including newly-listed Ather Energy and legacy players Bajaj Auto and TVS Motor Company, have seen their sales increase 1.5X, 1.9X, and 1.5X, respectively, compared to the prior year period. Notably, both Bajaj Auto and TVS Motor currently only sell one model of their electric scooters, namely Chetak and iQube, respectively.
The dip in sales has also weighed heavily on Ola Electric’s share price as well as its financials. In July, the company saw its quarterly revenue from operations fall 49.6% to Rs 828 crore, as deliveries dropped to 68,192 units, down from 1,25,198 units a year ago.
Its shares have taken a similar beating with its price falling by over 50% year-to-date, as per Thursday's closing at Rs 41.37 apiece on the National Stock Exchange.
TVS maintains four-month streak in July
In July, TVS held a 21.7% market share after the iQube maker sold 20,919 units during the period, even as the company reportedly eyes production cuts due to the ongoing rare earth magnetic shortage. The shortage has also hit Bajaj and Ather Energy, and they are also eyeing similar measures, according to reports.
Meanwhile, Bajaj Auto sold 18,892 units during the month, gathering a market share of 19.6% during this time. In an interview with The Economic Times, Managing Director Rajiv Bajaj said the company could see a “zero month” of EV output in August, interrupting production of its Chetak scooters, as well as its three-wheelers if the magnet shortage continues.
Despite the ongoing crisis, Ather Energy became the only manufacturer to have sold more electric two-wheelers in July than in the previous month. The Rizta-maker sold 15,323 units in July compared to 14,664 units in June, garnering a market share of 15.89%—inching closer to Ola Electric.
While the company is yet to disclose its first-quarter results, it managed to cut down its losses to Rs 237.3 crore in Q4 FY25 from Rs 283.9 crore in the year-ago period, and report a 29% year-on-year rise in quarterly revenue to Rs 676.1 crore on the back of rising demand for its vehicles.
Ola sold 16,510 units during the month, with a market share of 17.1%, as the once electric two-wheeler market leader sees a slowdown in sales.
(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director in Ola Electric)
Edited by Jyoti Narayan