Ola Electric to lay off 5% workforce amid sales decline
What's the story
Ola Electric has announced plans to lay off nearly 5% of its workforce. The company said the move is part of an "ongoing structural transformation" aimed at increasing automation in its frontend operations. This comes as Ola Electric grapples with a major decline in sales and market share over the past year.
Market decline
Massive drop in sales and market share
In the calendar year 2025 (CY25), Ola Electric's sales plummeted by a whopping 51% to 1,99,316 units from 4,07,700 units in CY24. This massive drop has nearly halved the company's market share from a dominant 35% to just over 15%. The company now sits in fourth place among electric two-wheeler manufacturers after previously leading the segment.
Service concerns
Customer service concerns
Ola Electric has also been under pressure over its customer service and after-sales support. The company claims to have resolved most of these issues, but the impending workforce reduction could further complicate service center experiences. This is especially concerning as Ola Electric tries to win back customer trust amid its declining market position.
Future prospects
Ola Electric's plans for the future
Despite the current challenges, Ola Electric remains optimistic about its future. The company has several products in the pipeline, including a compact electric car and the Diamondhead concept motorcycle. The latter is a futuristic model that Ola Electric says will use aerospace-grade materials like titanium, magnesium, and carbon fiber. It promises to deliver a sub-2-second 0-100km/h sprint while still being priced at around ₹5 lakh.