Ola faces declining sales and market share as competitors TVS and Bajaj catch up.
Ola Electric, India’s leading electric scooter manufacturer, recorded its lowest monthly sales in 2024 in September.
The SoftBank-backed company, which went public just two months ago, is grappling with increasing competition and service network issues.
Sales Decline and Market Share Loss
Ola Electric sold 23,965 vehicles in September, marking its second consecutive month of declining sales.
According to government data, the company’s market share has been on a consistent decline for five months, dropping from over 50% in April to 27% in September.
Meanwhile, rivals like TVS Motor and Bajaj Auto have been steadily gaining market share during this period.
Rivals Narrow the Gap
Ola’s once-dominant position in the electric scooter market is being challenged by TVS and Bajaj, both of which have strengthened their foothold with newer, competitively priced models.
The dealership network ramp-up has also contributed to this shift. Bajaj, for instance, increased its dealership count for its Chetak e-scooters from around 100 to over 500 in a year, whereas Ola’s dealership expansion has been much slower.
Service Network Challenges
Ola’s declining sales also reflect issues within its service network, which analysts believe are crucial to retaining market share.
Recently, a 26-year-old man was arrested for setting fire to an Ola showroom in Karnataka, citing dissatisfaction with the servicing of his e-scooter.
HSBC analysts have stressed that service will be a key factor in Ola’s ability to maintain its market position going forward.
As Ola continues to face stiff competition from its rivals and battles service network problems, the road ahead appears challenging for the electric scooter giant.
