Ola Electric's market share drops to 27% in September; Bajaj takes second spot with 21%

Ola Electric scooters

Ola Electric, India's largest electric two-wheeler maker, saw its market share drop to 27.4 percent by the end of September 2024, down from 31 percent in August, according to data available on the government's VAHAN website.

The company sold approximately 24,615 units in September, compared to 27,587 units in August, and 41,780 units in July. Sources told Moneycontrol that the sales decline is linked to increasing consumer complaints about Ola Electric's service facilities.

The fall in market share comes at a time when shares of Ola Electric Mobility fell more than 4 percent in trade on September 30, which also took the stock below the Rs 100-mark for the first time since its market listing. Moreover, the stock has also been in the red for 12 out of the last 14 sessions. On October 1st, the stock went up to Rs 102.65.

In a recent note, brokerage firm HSBC reported that it visited several Ola service stations and observed that many were overwhelmed with service requests. HSBC stated that improving service capacity is a critical area that Ola Electric must address ahead of the launch of its motorcycles, which were unveiled on August 15.

A few weeks ago, a 26-year-old man was arrested for allegedly setting bikes on fire at an Ola Electric showroom after failing to get issues related to his two-wheeler resolved despite multiple visits to the outlet.

To address these concerns, on August 27, Ola Electric also announced that the firm is launching around 1000 'on-demand and AI powered' service centres across India and added that there would be a quick service guarantee of one-day resolution of service issues.

EV 2W Market

The top four OEMs in July remained unchanged, with Ola Electric in the leading position, followed by TVS Motor, Bajaj Auto, and Ather Energy.

While Ola Electric's market share has dropped, other players including Ather, Bajaj and TVS saw an uptick in their market share.

Ather Energy sold around 12,671 EV two-wheelers in September as against 10,980 scooters. Ather presently has a market share of 14.1 percent. In July, Ather had a market share of just 9.5 percent. TVS Motors sold around 18,093 scooters as of September, as against 16,789 scooters sold in August. The firm presently has a market share of 20.1 percent.

Interestingly, Bajaj has garnered a market share of around 21.3 percent coming next to Ola Electric in September, with sales of nearly 19,096 scooters, overtaking TVS Motors.

Last month, the government announced the launch of The PM E-DRIVE scheme with an outlay of Rs 109 billion (Rs 10,900 crore). This is the replacement of FAME III scheme and was welcomes by the industry.