Electric scooter maker Ola Electric logged its lowest monthly sales this year in September, government data showed on Tuesday.
Its market share dropped to 27% in September from a peak of 49% in the first quarter of FY25, according to government transportation portal Vahan.
The company, which made its stock market debut about two months ago, sold 23,965 vehicles in September, recording a month-on-month decline for the second consecutive month.
The SoftBank-backed firm saw its dominance eroded by smaller competitors and servicing network challenges.
Here are few reasons for the decline in Ola Electric’s market share –
1- Heightened competition from Bajaj Auto
2- Dim consumer sentiment because of Shradh period
3- Perception hit due to soaring consumer complaints
4- Govt excluding passenger vehicles from the ₹10,900 crore PM E-DRIVE Scheme
In that period, Ola's closest rivals TVS Motor and Bajaj Auto have narrowed the gap, reporting market share gains for five and three straight months, respectively.
Slowing sales at Ola, whose prices have often undercut the market, pose further challenges to the company's financial results. It is yet to turn a profit.
Analysts attribute Ola's narrowing lead to rivals launching newer models priced closer to those of Ola, as well as its own strained service network that is seeing scooters pile up.
Over the last year, Bajaj has boosted the dealership count for its Chetak e-scooters from around 100 to over 500, as of June. Ola's dealership count has only risen from 750 to 800.
Last month, a 26-year-old man was arrested for allegedly setting fire to an Ola showroom in Karnataka over unsatisfactory servicing of a recently purchased e-scooter.
On September 27, Ola Electric had
said its electric scooter S1 X 2kWh has received compliance certificate as per the eligibility requirements under the production linked incentive (PLI) scheme.
With this, the company now has 5 products in both premium and mass-market two-wheeler products that are certified under the PLI scheme.
