Ola Electric’s EV market share drops to 27 pc as problems mount

NEW DELHI: Bhavish Aggarwal-run Ola Electric continues to lose its market share in the Indian EV market and in the month of September, it further dropped to 27 per cent amid rising competition as well as its crippling service centres.

The company saw 24,665 e-scooter sales last month, from 27,587 units sold in August, according to the government transportation portal Vahan.

Ola Electric’s market share has been consistantly decreasing amid rising competition from rivals like TVS Motor and Bajaj Auto. It earlier dropped to 31 per cent in August.

The company's nearest rivals TVS Motor and Bajaj Auto narrowed the gap in September, increasing their market share once again. Bajaj Auto showed growth with registrations rising to 19,103 units in September (from 16,789 units in August). TVS Motor registered 18,084 units, up from 17,649 units in August.

Ather Energy also saw a boost in sales, with volumes climbing to 12,676 units in September (from 10,980 units in August).

Ola Electric’s rivals have launched newer models which are priced closer to those of Ola.

The company’s share has also lost its sheen, hovering around Rs 100 from its all-time high of Rs 157.40 — a loss of about 38 per cent. The share of the electric two-wheeler maker has declined for the ninth out of the last 11 sessions.

As per reports, Ola Electric’s flagship S1 series EV scooter has become a nightmare for hundreds of customers who are consistently facing issues like malfunctioning hardware and glitching software and spare parts are hard to come by, resulting in inordinate delays. Market analysts say that the share is showing extreme volatility due to challenges the company faces as well as rising competition and service-related issues.

Trade analysts said the stock is currently loss-making and trading at high valuations.