Ola Electric Slips As Two-Wheeler EV Race Heats Up
- ByStartupStory | December 1, 2025
From Market Leader To Fifth Place Amid Intensifying Competition
Ola Electric has fallen to fifth position in India’s electric two-wheeler market in November 2025, with its market share dropping sharply to 7.4% after selling 8,254 scooters. This marks a steep decline from over 25% share in the same period last year, as legacy manufacturers and rivals like TVS Motor, Bajaj Auto, Ather Energy, and Hero MotoCorp’s Vida brand consolidate their grip through wider portfolios, aggressive pricing, and stronger distribution networks.
TVS Motor retained the top spot with 26.8% share driven by iQube demand, followed by Bajaj Auto at 22.6% on Chetak popularity and Ather Energy at 18.7% with over 20,000 units sold. Hero’s Vida surged to fourth with 11,795 registrations and 10.6% share, fueled by affordable segment launches that capitalized on Ola’s operational setbacks.
Operational Challenges And Price Wars Erode Lead
The slide stems from regulatory scrutiny over safety and subsidies, service complaints, registration delays, and a brutal price war compressing margins without volume recovery. Ola’s capital-heavy model of over 3,000 company stores contrasts with Ather’s asset-light dealership approach, contributing to higher costs amid subsidy phase-outs like FAME-II.
Financial pressures mounted with Q2 FY26 operating revenue falling 43% year-on-year to ₹690 crore, though losses narrowed via cost cuts. Ola revised full-year sales guidance to 221,000 units from 325,000–375,000, reflecting softer demand and competitive intensity.
Rivals Gain Ground On Service And Scale
Incumbents leverage established supply chains and after-sales trust, where Ola faces backlash. Ather reported ₹899 crore Q2 revenue (up 54% YoY) and reduced net loss to ₹157 crore, bolstered by its Ather Grid charging network and product quality. Ather’s market cap of ₹24,348 crore now exceeds Ola’s ₹18,168 crore, despite Ola’s earlier August 2024 listing versus Ather’s May 2025 debut.
Ola’s stock trades over 60% below 2024 peaks, hit by earnings misses and market share erosion. Management pushes diversification into battery energy storage systems (BESS) with Ola Shakti launch, targeting FY27 revenue of ₹1,000–1,200 crore.
Broader EV Market Dynamics
India’s e-two-wheeler segment grows despite November stumbles, with high-speed models dominating as brands refresh lineups and expand charging. Ola must rebuild trust, optimize costs, and execute on network expansion to reclaim leadership in this maturing race where scale, service, and pricing determine winners.
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