Ola Electric emerges as leading electric two-wheeler brand in India
What's the story
Within five months of entering the Indian electric two-wheeler market, Ola Electric has become the segment leader by displacing Hero Electric. As per the Centre's VAHAN portal, Ola grabbed the top spot in April by selling 12,683 scooters. This feat comes at a time when the industry is reeling from a semiconductor chip shortage and a spate of fire incidents.
Context
Why does this story matter?
Thanks to a successful advertising campaign and direct-to-home delivery model, Ola Electric's scooters have appealed to Indian buyers on a scale not achieved by its rivals. Even negative press related to fire incidents has been unable to slow down the brand's growth on our shores. Nonetheless, the ongoing global shortage of semiconductor chips remains a cause of worry for the industry.
Figures
Okinawa sold 10,000+ scooters for the first time in April
In April, Okinawa Autotech grabbed the second spot by delivering more than 10,000 electric scooters for the first time. Meanwhile, Hero Electric was pushed to the number three spot by retailing 6,570 units - a 50% decline in sales compared to March. Finally, Ampere and Ather bagged the fourth and fifth positions in terms of sales volume last month.
Prowess
Ola's sales continue to grow despite fire incidents
Ola Electric's image recently took a hit when a video of its scooter going up in flames went viral. However, sales remain unaffected and have been growing steadily since December last year. Okinawa has also been caught in such incidents but registered a sales growth. Hero Electric has not been involved in any such controversy but its sales have been heavily hit.
Problems
Hero Electric failed to dispatch scooters to dealers in April
Hero Electric delivered over 13,000 scooters in our country this March, and the figure went down by half last month. The production and deliveries have been severely hit by the ongoing semiconductor shortage. It recently announced that it was unable to dispatch a single scooter to its dealerships in April. The brand's woes might continue this month, thus aiding its rival Ola Electric.
Guidelines
Centre's new directives might also affect sales
Due to the recent spike in incidents of EVs catching fires, the Centre has verbally dissuaded companies from launching new models until the cause of fires and corrective steps required can be found. Meanwhile, brands whose models are not facing such mishaps have been urged take corrective actions on their sold goods. All of these will adversely impact EV sales in the short term.