Bajaj Auto, TVS Motor shares soar as EV market share grows; Ola Electric loses ground

Ola Electric shares have been declining for the past two days after the listed entity's share price doubled in value after listing on August 9.

Shares of Bajaj Auto and TVS Motor Company Limited surged up to 4 percent in morning trade on August 23 after the two saw an increase in two-wheeler EV market share while Ola Electric, a newly listed company, saw a decrease.

At 10 am, shares of Bajaj Auto were trading nearly 3 percent higher at Rs 10,188 apiece to become the top gainer on the Nifty. The TVS Motor Company stock rose over 3 percent to Rs 2,791. Meanwhile, Ola Electric Mobility scrip was trading 2 percent lower at Rs 128.

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Jefferies notes that while Ola initially saw a significant rise in its electric two-wheeler (E2W) market share in the first half of 2024, its share has recently declined from 49 percent in the June quarter to 33 percent so far in August, though it remains the market leader. On the other hand, TVS and Bajaj have successfully expanded their E2W offerings with more affordable models, resulting in a market share gain of 4-7 percentage points during the same period.

Despite the introduction of lower-priced electric two-wheelers, overall EV penetration in the segment has remained in the 4-7 percent range over the past two years. Jefferies expects this penetration to gradually increase in the coming years.

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The upbeat sentiment around the TVS stock also stems from UBS' bullish 'Buy' call on the counter following the launch of the all-new Jupiter 110 scooter. UBS said the newly launched Jupiter scooter is a significant upgrade over its predecessor and competitors while being at a similar price point. The launch is expected to potentially add 15,000-20,000 units in sales volume.

Read more: NSE further tightens norms for SME listings amid ongoing frenzy

Meanwhile, Ola Electric shares have been declining for the past two days after the listed entity's share price doubled in value after listing on August 9.

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