Ola Electric shares fall 5% in early trade after EV sales decline in November

Bhavish Aggarwal-led Ola Electric’s shares fell 5% in early trade on Monday after the electric vehicle maker reported a 30% decline in month-on-month sales numbers, according to Vahan data. 

Ola Electric sold 29,196 units in November compared to 41,775 units in October, resulting in a decline in its market share to 24.7%. This is a marked decline from its market share of 31.2% in August when the company listed on Indian stock exchanges. 

Additionally, the company saw its market share plunge from earlier this year when it had a stronghold of 53.6% of the market in April. 

The total number of electric two-wheelers sold during the month touched 118,924 units, 29% higher compared to the year-ago period. 

Amidst its dwindling market share, Ola Electric on November 26, said that it had launched its S1Z and Gig range of electric scooters with deliveries set to begin in April 2025, in an attempt to capture the booming use of electric scooters in the Indian gig economy. 

On Monday, Aggarwal also posted on X that the company will increase its store footprint across the country. “Going from 800 stores right now to 4000 stores this month itself,” Aggarwal posted. These stores will be opening together on December 20th, the post said. 

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In a statement, the company also said that all stores will be co-located with service facilities.

However, competitors including IPO-bound Ather Energy, TVS Motor, and Bajaj Auto captured 11%, 23%, and 22% of the market share, respectively. 

Ola Electric’s sales numbers come at a time when the company is facing intense scrutiny from its consumers amidst rising complaints about its two-wheelers and lack of after-sale services. The Central Consumer Protection Authority (CCPA) has opened an investigation into the company’s claims of having addressed 99.1% of the 10,644 complaints it received after the consumer watchdog served a show cause notice in October. 

The EV-maker is also deploying steps to achieve profitability, a sticking point that has haunted the company since it listed on public bourses. In an attempt to achieve this, Ola Electric has undertaken a restructuring exercise that is expected to affect 450-500 employees, YourStory had reported. 

Ola Electric reported a net loss of Rs 495 crore for the July-September quarter, down from Rs 524 crore in the year-ago period. However, on a quarterly basis, Ola Electric's loss widened from Rs 324 crore in the April-June quarter.

Shares of Ola Electric rose 6.68% to Rs 93.26 on the BSE on December 2, with the movement coming amidst the company's plans to expand its retail network.

(The article was updated with Ola Electric's share price.)

(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director in Ola Electric.)