Ola Electric reclaims 31% market share as festive sales rise

Electric two-wheeler manufacturer Ola Electric has regained its market share, reaching 31% in October after five consecutive months of decline.

According to government portal Vahan, Ola Electric sold 41,605 units in October, up from 24,716 in September.
The growth can be attributed to strong festive season sales for the Bhavish Aggarwal-led company. In the first half of October, the company’s market share had increased to 34.9%.


Ola Electric's market share had been sliding since May, when it stood at 49.8%, down from 53.6% in April. In June, July and August, its market share was recorded at 47.5%, 40.1% and 32.1%, respectively.

In October, rival two-wheeler makers Bajaj Auto, TVS Motor and Ather Energy recorded market shares of 25.7%, 22.3% and 11.9%, respectively.

Despite the recent rise in sales, Ola Electric has faced an increase in customer complaints about after-sales service, software issues and hardware malfunctions, which contributed to a decrease in sales and market share over the past few months.

For the first time, Ola Electric shares dropped below their listing price of Rs 76 per share in intraday trading on Tuesday.

Also Read: Under fire, Ola Electric taps EY India to get back on track

Last month, the company’s market capitalization also dipped below the $5 billion mark for the first time since its listing, following a public dispute between Aggarwal and comedian Kunal Kamra, who shared concerns on microblogging site X regarding Ola Electric scooter quality, including an image showing several electric scooters parked at an Ola service centre.

The Central Consumer Protection Authority (CCPA) had issued a show-cause notice to Ola Electric for alleged consumer rights violations, misleading advertisements and unfair trade practices. The company later informed the authority that it had resolved 99.1% of the 10,644 consumer complaints received.

Prior to this, the Automotive Research Association of India (ARAI) also questioned Ola Electric’s pricing strategy for its S1 X 2 kWh scooters before its flagship sale. It sent a notice to the company highlighting discounts on the model, suggesting Ola Electric had not informed the agency of a price cut, which could affect the model’s subsidy eligibility. Ola Electric clarified that it had not altered prices during its ‘Boss Sale’ and provided an October 6 invoice showing a Rs 5,000 discount, along with a screenshot from its app confirming no price change.

To address service-related concerns, CEO Aggarwal announced last month that Ola Electric would double its service centres to 1,000 by December as part of its ‘Hyperservice’ campaign. Besides, through its ‘Network Partner’ programme, it aims to onboard 10,000 partners across sales and service by 2025.

Aggarwal added that the company will introduce a quick-service guarantee, providing a backup Ola S1 scooter for customers with service delays beyond a day.

Ola Electric’s consolidated net loss widened to Rs 347 crore in the June quarter, compared to Rs 267 crore a year ago. However, its operating revenue increased 32.3% to Rs 1,644 crore from Rs 1,243 crore in the year-ago period.

On Thursday, Ola Electric Mobility shares closed at Rs 80.88 apiece on the BSE, up 1.28% on a day when the benchmark index ended the session down 0.69%.