Ather Energy has surpassed Ola Electric in revenue from operations for the first time, signaling a significant shift in India’s electric two-wheeler market. In the fourth quarter of FY25, Ather reported ₹676 crore in revenue from operations, edging past Ola’s ₹611 crore. This development underscores Ather’s growing market presence and the intensifying competition in the EV sector.
📈 Financial Performance: Ather vs. Ola
- Ather Energy: Achieved a 29% year-on-year increase in revenue, reaching ₹676 crore in Q4 FY25. The company’s net loss narrowed to ₹234 crore, a 17% improvement from the previous year.
- Ola Electric: Experienced a 41.5% sequential decline in revenue from operations, totaling ₹611 crore in Q4 FY25. The company’s net loss widened to ₹2,276 crore for FY25, driven by decreased revenue and increased warranty provisions.
🛵 Market Dynamics
Ola Electric, once the market leader with over 50% share, has seen its dominance wane, dropping to approximately 20% market share by May 2025. This decline is attributed to operational challenges and increased competition from legacy manufacturers like TVS Motor and Bajaj Auto.
Ather Energy’s strategic focus on product innovation and customer experience has contributed to its rising market share, now holding 14% as of April 2025.
🚀 Strategic Initiatives
- Ather Energy: Launched the family-focused ‘Rizta’ scooter, which has driven sales growth. The company is also expanding its presence in northern and western India to capture a broader customer base.
- Ola Electric: Plans to achieve profitability in FY26 by improving gross margins and streamlining operations. The company is also focusing on integrating its own battery cells into products to enhance efficiency. mint
📊 Conclusion
Ather Energy’s overtaking of Ola Electric in revenue marks a pivotal moment in India’s EV industry, highlighting the dynamic nature of the market and the importance of strategic agility. As competition intensifies, companies will need to focus on innovation, operational efficiency, and customer satisfaction to maintain and grow their market positions.
