Ola Electric, once the frontrunner in the electric 2-wheeler (E2W) segment, has faced a significant sales and revenue decline. In May, the company dropped to third place in market share, trailing behind TVS Motor and Bajaj Auto. This slowdown is reflective of broader competitive pressures, evolving regulatory frameworks, and the dynamics of the electric vehicle ecosystem in India.
The E2W segment saw a robust retail performance in May, with total sales reaching 1,00,266 units, based on the government's Vahan portal data. Leading the pack, TVS Motor sold 24,560 units, achieving 107% growth year-on-year and capturing a 24% market share.
Bajaj Auto followed closely with 21,770 units sold, showing an impressive 135% growth compared to the same month last year. This performance secured Bajaj a 22% share in the electric scooter market.
Ola Electric, which had previously been a dominant force in the E2W segment, experienced a sharp fall in sales. In May, the company sold 18,499 units, down 51% year-on-year. This decline pushed Ola Electric to the third position with an 18% market share.
The slowdown coincides with increasing competition from established automakers, rising consumer expectations, and the emergence of newer models with enhanced features and competitive pricing.
Ola Electric’s financial results for the fourth quarter of FY25 highlighted the company’s ongoing struggles. It posted a net loss of ₹870 crore in Q4, a significant increase from the ₹416 crore loss in the same quarter of the previous year. This represents more than a twofold rise in losses.
Revenue from operations fell drastically to ₹611 crore in Q4 FY25, down from ₹1,598 crore in Q4 FY24. This marked a 61.8% drop, making it one of the company’s weakest quarters since it began commercial deliveries in 2021.
Read More: Best EV Stocks in India in June 2025 Based on 5Y CAGR.
For the full financial year FY25, Ola Electric’s revenue declined to ₹4,645 crore compared to ₹5,126 crore in FY24. The reduced figures are attributed to regulatory uncertainty around subsidies, a shift in consumer preferences, and inventory corrections across dealerships.
The challenging market environment has made it difficult for Ola Electric to sustain its earlier momentum, even as it continues to invest in technology and manufacturing.
Ather Energy, another key player in the E2W market, reported a net loss of ₹234.4 crore in Q4 FY25. This was an 18.5% increase in losses from the previous quarter. Despite the widening loss, Ather’s revenue from operations grew 29% year-on-year to ₹676 crore, up from ₹523.4 crore.
The company also saw an increase in total expenses, rising to ₹922 crore in Q4, reflecting ongoing investments in expansion and scaling operations.
The E2W space in India is undergoing a significant transformation. New entrants, improved product offerings, and aggressive pricing by established automotive brands have created a more competitive environment. Companies are adjusting their strategies in response to subsidy changes and changing consumer demand.
This realignment is expected to shape the market dynamics in the coming quarters, with focus shifting to innovation, after-sales support, and network expansion.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 4, 2025, 3:29 PM IST
Team Angel One
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