Ola Electric Shares in Focus; Slips to Third Place in EV Two-Wheeler Market as TVS and Bajaj Surge

Ola Electric’s share price remained in focus, as the dominant player in India’s electric two-wheeler segment, has slipped to the third position in May 2025 as traditional automotive giants TVS Motor and Bajaj Auto gained market share.

According to data from the government's Vahan portal, Ola's market share fell to 20% in the first 26 days of May, down from 22.1% in April, and a sharp decline from over 50% just 13 months ago, as per The Economic Times news report.

Ola’s Market Performance & Registration Trends

Ola Electric reported 15,221 vehicle registrations between May 1 and May 26 a staggering 60% drop from the 37,388 units registered in May 2024. In contrast, TVS Motor and Bajaj Auto captured 25% and 22.6% market share, respectively, even though their volume saw only slight declines.

Ather Energy, another major EV player, also experienced a dip in market share, slipping to 13.1% in May from 14.9% the previous month, with vehicle registrations falling to 9,962 units.

Ola’s Missed Targets and Operational Pressures

The latest figures fall significantly short of expectations set by Ola Electric CEO Bhavish Aggarwal, who had stated in the last earnings call that the company’s auto segment could break even at the EBITDA level if monthly sales reached 50,000 units in the coming quarters, as per the news report.

Ola’s Fundraising and Financial Strategy

In an effort to stabilise operations and address financial pressure, Ola Electric’s board recently approved a plan to raise up to ₹1,700 crore via non-convertible debentures (NCDs) and other debt instruments. This is the first major fundraising activity since its IPO in August 2024.

However, these measures come at a time when the company’s stock has been underperforming. On Wednesday, shares of Ola Electric Mobility closed at ₹52.91 on the BSE, considerably below the IPO issue price of ₹76.

Regulatory Scrutiny Intensifies

Ola Electric has also been facing increasing scrutiny from regulators. Investigations were triggered by inconsistencies in sales data, reports of missing trade certificates at several outlets, and concerns over vehicle quality.

One notable discrepancy occurred in February, when Vahan data recorded only 8,652 Ola registrations, while the company claimed it sold 25,000 units. Ola attributed the gap to a temporary delay caused by contract renegotiations with registration vendors Rosmerta and Shimnit India.

The Ministry of Heavy Industries and the Ministry of Road Transport and Highways have initiated inquiries into the mismatch, further compounding the company’s regulatory challenges.

Ola Electric's Share Price Performance

Ola Electric Mobility Limited was trading slightly lower on the equity market. The stock opened at ₹52.91, matching its previous close, and reached a high of ₹53.30 before dipping to a low of ₹52.55.

The current quote stands at ₹52.60, reflecting a marginal decline of ₹0.31 or 0.59% at 9:40 AM on the NSE from the previous session. The Volume Weighted Average Price (VWAP) for the day is ₹52.91.

Read More: Vanguard Cut Ola's Valuation to $1.25 Billion Amid Falling Market Share.

Conclusion

Ola Electric’s decline in market share highlights the growing competition and shifting dynamics in India’s electric two-wheeler sector. As legacy automakers strengthen their positions, Ola faces mounting pressure to streamline operations, address regulatory concerns, and restore investor confidence.

Disclaimer: This blog is for informational purposes only and does not constitute investment advice. Readers are encouraged to review official filings and seek professional guidance before making investment decisions.

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