Amid intense competition and strategy shifts, Ola Electric faces record staff turnover and a steep market share drop.
Ola Electric Mobility has reported a steep rise in employee attrition alongside a sharp drop in market share. The company’s attrition rate rose to 54% in FY25 from 44% the previous year, higher than the automotive industry average of 10.4% as per Deloitte.
Ola lost nearly 20% of its permanent workforce, with headcount dropping to 3,231 in FY25 from 4,011 in FY24. The decline was notable in its technology and R&D divisions, where staff numbers fell by 16% to 763 employees from 907. These teams work on vehicle engineering, battery systems, embedded software, electronics, and other core areas.
The company attributed its higher attrition partly to churn at the front end, as it directly operates stores rather than using the dealership model followed by legacy brands. For key talent in critical roles, attrition was 16.1% in FY24.
The workforce reduction coincides with mounting competition from players like TVS Motor Company and Bajaj Auto, as well as product strategy changes. Ola shelved its electric car project in FY25, incurring an impairment loss of ₹20 crore. Remaining development expenditure of ₹123 crore is now allocated to its upcoming electric three-wheeler.
Market share for Ola’s electric two-wheelers fell to around 19% in June 2025, from roughly 46% a year earlier, as the brand faced service-related complaints and competitive pressures in pricing, product offerings, and distribution.
For FY26, Ola has issued subdued guidance, projecting volumes between 325,000 and 375,000 units, compared to 360,000 in FY25. This translates to growth ranging from a 10% decline to a 4% increase, the slowest pace since its 2021 launch. The company expects motorcycles to account for 15–20% of FY26 sales.
