Ola Electric reported its lowest monthly sales of the year in September, selling 23,965 vehicles—a month-on-month decline for the second consecutive month. As a result, the leading electric scooter manufacturer in India is facing increased competition from smaller rivals, particularly TVS Motor and Bajaj Auto, who have been narrowing the gap in market share.
Ola’s market share has dropped to 27% in September, down from over 50% in April, marking five straight months of decline. Meanwhile, both TVS and Bajaj have seen increases in their market shares for five and three months, respectively.
Despite the company’s recent stock market debut two months ago, it has not yet turned a profit, and its declining sales pose additional challenges for its financial performance. Analysts suggest that Ola’s shrinking lead can be attributed to competitors introducing new models at similar price points, as well as issues within its own service network, which has resulted in delays and customer dissatisfaction.
Bajaj has significantly expanded its dealership network for its Chetak e-scooters, increasing from around 100 to over 500 locations by June, while Ola’s dealership count has only grown from 750 to 800. This enhanced accessibility has played a crucial role in Bajaj and TVS’s ability to challenge Ola’s dominance.
Last month, a concerning incident occurred when a 26-year-old man was arrested for allegedly setting fire to an Ola showroom in Karnataka due to unsatisfactory service on a recently purchased e-scooter. According to HSBC analysts, the quality of Ola’s service will be a critical factor in retaining its market share moving forward.
