The intensifying competition in the EV space urges manufacturers to focus on innovation, pricing strategies, and robust infrastructure to capture or maintain market share.
Following a 33 percent decrease in sales in November, Ola Electric’s market share has now reduced by 5.5 percent to Rs 81.20. Reports also surfaced that the company has managed to sell 27,746 e-scooter units amid heavy consumer complaints and government strict measures. Interestingly, despite the sales decline, the company is spearheading the market share with 25.09 percent in the electric two-wheeler segment.
Ola’s competitors, TVs and Bajaj, have recorded 26,036 and 24,978 unit registrations, with a market share of 23.55 percent and 22.59 per cent. According to government data, the EV market decreased by around 18 percent in registrations in November due to post-festival fever. Ola’s significant drop in performance highlights the challenges it faces in the increasingly competitive EV market. In contrast, TVS and Bajaj Auto demonstrated more stability with smaller declines of 13.4 percent and 12 percent, respectively.
Ola’s performance as the market leader, with 392,176 vehicles sold and a 37 percent market share year-to-date, showcases its dominance in the electric vehicle (EV) segment. Despite its leadership, the fluctuation in market share (from a high of 49.8 percent in May to a low of 28.6 percent in September) indicates sensitivity to market conditions, competition, and consumer sentiment. TVS and Bajaj Auto hold 19.5 percent and 16.6 percent market shares with 201,966 and 173,721 sold units. On the other hand, Ather’s 11 percent share with over 100,000 units sold demonstrates its growth trajectory and increasing consumer acceptance.
Ola Electric’s financial performance in Q2 FY25 reflects both progress and challenges. The company reported a net loss of Rs 495 crore, slightly improving from the previous year’s Rs 524 crore loss in the same quarter. Despite these gains, EBITDA losses for the quarter stood at Rs 223 crore, an improvement from Rs 321 crore in the same period last year, but a decline from the Rs 65 crore loss reported in Q1 FY25. EBITDA margins improved to -28.4 percent from -46 percent year-over-year.
The intensifying competition in the EV space urges manufacturers to focus on innovation, pricing strategies, and robust infrastructure to capture or maintain market share. For Ola, this could be a signal to reassess its approach to staying competitive. TVS and Bajaj’s performance implies they are weathering the competitive pressures more effectively, though the overall declining trend suggests challenges for the industry.
