Why Did Ola Electric Experience a 51% Drop in Electric 2W Sales in May?
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Synopsis
Ola Electric faced a daunting challenge this May, experiencing a staggering 51% decline in electric two-wheeler sales. With fierce competition from TVS Motor and Bajaj Auto, the company struggles to maintain its market position. Explore the implications of this downturn and what it means for the future of electric mobility in India.
Key Takeaways
- Ola Electric faced a 51% sales decline in May.
- TVS Motor and Bajaj Auto outperform Ola Electric.
- Ola Electric's Q4 FY25 revenue fell to Rs 611 crore.
- Regulatory uncertainties impact the electric vehicle market.
- Ather Energy shows resilience with increased revenue.
New Delhi, June 1 (NationPress) Ola Electric experienced a significant 51% year-on-year decline in electric two-wheeler sales, bringing the total to 18,499 units in May. This slump has caused the company to drop to third place, trailing behind competitors TVS Motor and Bajaj Auto.
During May, the electric two-wheeler (E2W) market saw robust activity, with total retail sales reaching 100,266 units, as reported by the government’s Vahan data.
TVS Motor led the market with 24,560 units sold, marking a remarkable 107% year-on-year growth and a 24% market share.
Bajaj Auto followed, selling 21,770 units with a 135% YoY increase and securing a 22% market share, according to the Vahan report.
Under the leadership of Bhavish Aggarwal, Ola Electric achieved an 18% market share in May, placing it in the third position.
Ather Energy, which went public recently, reported sales of 12,840 units, capturing a 13% market share.
The financial results for Ola Electric in the fourth quarter (Q4) of FY25 were disappointing, as the electric vehicle manufacturer noted a sharp decline in revenue and a significant increase in net losses on a year-on-year basis.
The company faced a net loss of Rs 870 crore for the January-March quarter (Q4), an increase from Rs 416 crore in the same quarter last year (Q4 FY24), according to its stock exchange filing.
Revenue from operations plummeted to Rs 611 crore in Q4 FY25, reflecting a 61.8% drop from Rs 1,598 crore in the previous year.
This represents one of the company’s poorest quarterly revenue results since it began commercial deliveries of electric two-wheelers in late 2021. The decline is attributed to escalating competition in the electric scooter market, regulatory uncertainties concerning government subsidies, and inventory adjustments at dealerships.
For the fiscal year FY25, Ola Electric’s revenue also fell to Rs 4,645 crore, down from Rs 5,126 crore in FY24.
Ather Energy similarly reported a net loss of Rs 234.40 crore in the fourth quarter of FY25, widening by 18.5% from a net loss of Rs 197.8 crore in Q3. Total expenses rose to Rs 922 crore in Q4, an increase of 8.7% on a quarterly basis and 12.6% year-on-year.
The company's revenue from operations increased by 29% to Rs 676 crore in Q4 from Rs 523.4 crore in the same quarter last year.
Point of View
I recognize that Ola Electric's recent struggles highlight the challenges faced by emerging companies in a competitive market. While the decline in sales raises concerns, it also opens doors for necessary innovation and adaptation. As we continue to support advancements in electric mobility, it is crucial to remain hopeful and proactive in overcoming these hurdles.
NationPress
07/09/2025
Frequently Asked Questions
What caused Ola Electric's sales decline in May?
The 51% drop in Ola Electric's sales can be attributed to increased competition in the electric scooter market and regulatory uncertainties regarding government subsidies.
How did competitors perform in May?
In May, TVS Motor sold 24,560 units with a 107% growth, while Bajaj Auto sold 21,770 units, achieving a 135% YoY increase in sales.
What were Ola Electric's financial results in Q4 FY25?
Ola Electric reported a net loss of Rs 870 crore in Q4 FY25, with revenues from operations falling to Rs 611 crore, marking a 61.8% decline from the previous year.
How did Ather Energy perform in comparison?
Ather Energy reported a net loss of Rs 234.40 crore in Q4 FY25, but increased its revenue from operations by 29% to Rs 676 crore.
What is the market outlook for electric two-wheelers?
While competition is intensifying, the electric two-wheeler market still shows potential for growth, especially with continued innovations and consumer interest in sustainable transportation.
