Ola Electric opens 3,200 outlets as Bajaj leads EV segment
What's the story
Ola Electric, under founder and CEO Bhavish Aggarwal, has expanded its retail presence from 800 to 4,000 outlets on Christmas. The move to launch as many as 3,200 new outlets comes as the EV manufacturer faces tough competition from Bajaj Auto in the two-wheeler EV segment According to registration data from Vahan, Bajaj Auto has sold 15,203 EVs this month, ahead of Ola Electric's 11,385 units.
Market dynamics
Market share challenged by legacy automakers
Ola Electric's expansion comes at a time when traditional automakers such as Bajaj and TVS are eating into its market share. These legacy companies already have a wide dealership network across India. With 3,200 new outlets, Ola Electric hopes to create the country's most extensive EV distribution network spanning all pin codes. The expansion will also help the company launch electric motorcycles next year.
Expansion strategy
New stores to offer service facilities
Despite topping EV sales for calendar year 2024, Ola Electric has had its share of troubles. The company was issued a show-cause notice by the Central Consumer Protection Authority (CCPA) for violating consumer rights, misleading advertising, and unfair trade practices after complaints of long service delays. Addressing these concerns, Aggarwal has said that the newly opened 3,200 stores will also offer service facilities.
Twitter Post
Take a look at Aggarwal's post
What energy, and what a
—turnout! to join us as we celebrate the opening
Over 1 lakh people have comeof 4000 @OlaElectric stores in India!#SavingsWalaScooter isnow accessible to every Indian!💰🛵⚡ pic.twitter.com/xjvuqo2dCFBhavish Aggarwal (@bhash) December 25, 2024
Penetration
Ola Electric targets light-weight commuter motorcycle segment
Currently, EVs account for just 5% of two-wheeler sales in India and 20% of overall scooter sales. The government envisions 80% electrification in two-wheelers by 2030. To increase volumes, Ola Electric is focusing on the light-weight commuter motorcycle segment, which makes up 75% of India's two-wheeler sales. On August 15, Aggarwal unveiled the 'Roadster' series of electric motorcycles priced between ₹74,999 and ₹2.49 lakh.
Financial performance
Net loss widens despite EV market growth
Despite the surge in EV volumes, profitability continues to be a mirage for electric vehicles. Ola Electric's net loss widened by 7.6% to ₹1,584 crore in FY24. Bajaj Auto's electric two-wheeler business is also not in the green yet. Bajaj Auto CFO Dinesh Thapar said product pricing is beyond their control and added that electric two-wheeler prices have only fallen recently as cost cuts outpaced price cuts.
Product launch
Ola Electric unveils exclusive S1 Pro Sona Edition
Along with the store inaugurations, Ola Electric also unveiled the Ola S1 Pro Sona Edition—an exclusive new model of its flagship scooter. The electric scooter is distinguished by its 24-carat gold accents. However, this special edition cannot be purchased directly and can only be won through a unique contest organized by the company. Participants can enter by sharing content on social media or participating in in-store activities.