Why Ola Electric's market share in India halved this year
What's the story
Ola Electric, a leading player in India's electric two-wheeler segment, has witnessed a major decline in its market share. The company's share has dropped by over 50% from 36.7% in 2024 to just 16.1% this year. Despite the overall growth of the segment, Ola Electric sold only 196,767 vehicles this year as per data from the government-run Vahan portal.
Market dynamics
Legacy manufacturers close the gap
Legacy manufacturers such as TVS Motor, Bajaj Auto, Ather Energy, and Hero MotoCorp have been closing the gap with Ola Electric. These companies have leveraged their extensive distribution networks, robust after-sales support, and wider product portfolios to gain market share. This year was particularly tough for many EV makers due to disruptions in heavy rare earth metal supply chains caused by geopolitical tensions in China.
New frontrunner
TVS Motor emerges as market leader
TVS Motor has emerged as the new market leader with a 24.2% share, selling 295,315 units this year. Bajaj Auto follows closely with a 21.9% share. VG Ramakrishnan, Managing Partner at Avanteum Advisors LLP, predicts more competition in the electric two-wheeler space as incumbent manufacturers leverage their scale, brand recall and service reach to gain an edge over newer entrants like Ola Electric.
Customer complaints
Ola Electric faces operational challenges
Ola Electric has been facing operational challenges as well as customer complaints about service turnaround times and delivery consistency. The company recently expanded its Hyperservice initiative with dedicated centers promising same-day service guarantees at no extra cost. However, industry executives say stabilizing sales and improving after-sales execution will be crucial to prevent further erosion of retail momentum in the future.