Ola’s setbacks have benefitted traditional motorcycle manufacturers Bajaj Auto and TVS Motor Company amid fierce rivalry between the two. For the first time, Bajaj surpassed TVS in sales, moving 17,000 units compared to just over 16,000 for TVS, according to the Vahan portal data. This marks Bajaj’s inaugural lead in sales over TVS.
The electric two-wheeler market remains volatile, with traditional manufacturers gaining a larger share while the market leader, Ola Electric, sees its dominance diminish. As of September, Ola’s sales dropped by nearly a third compared to last year, with market share falling to 25.7% from over 47%. Last September, Ola nearly controlled half of the e2w market, but now it holds just a quarter.
This shift has proven advantageous for established two-wheeler manufacturers Bajaj Auto and TVS Motor Company, who have also been competing fiercely. For the first time, Bajaj has overtaken TVS in sales, selling over 17,000 units compared to TVS’s slightly more than 16,000 units, as recorded by the Vahan portal. This milestone means Bajaj now represents nearly one in every five e2ws sold, while TVS holds a market share of about 19.56%. Another significant player, Ather Energy, stands out as the only non-legacy OEM to increase its market share this September, with sales soaring by three-fourths to over 11,000 units from just under 6,500 units in September of last year, now accounting for almost 14% of the market.
The decline in Ola’s market presence is attributed to various factors, including customer dissatisfaction with after-sales services and a lack of human interaction in their purchasing and service processes. Customers often face difficulties with service responsiveness and the impersonal nature of buying and servicing through automated systems. In response, Ola recently launched a ‘hyperservice’ campaign aiming to double its service network outlets to 1,000 by December and train 100,000 third-party mechanics. This initiative, along with the introduction of AI-powered maintenance and a new retail format, is expected to boost Ola’s future performance.
In terms of sales, Ola has seen a decrease even month-to-month, selling over 21,000 units this September compared to over 27,000 units in August 2024 and more than 30,000 in September last year. Meanwhile, Bajaj’s overtaking of TVS has been credited to strategic pricing and a revised distribution approach, moving Chetak e2w sales to existing motorcycle dealerships for broader reach and deeper rural penetration.
While this month’s figures suggest a downturn for TVS, the anticipated launch of a new, affordable e2w during the festive season could bolster its market position. Bajaj’s success with pricing and distribution strategies, combined with Ather’s superior service offerings and clear market positioning, illustrates the dynamic nature of the e2w market.
