Ola Electric’s market share in India’s electric two-wheeler segment plunged to 17.35% in July 2025, a steep decline from 38.83% in July 2024, according to VAHAN data. The company sold 17,848 units, down 57.3% year-on-year
🏍️ Competition Surges: TVS and Bajaj Lead; Ather Narrows Gap
- TVS Motor retained the lead with 21.6%, boasting 22,225 sales in July.
- Bajaj Auto posted a 19.1% share with 19,650 units sold.
- Ather Energy narrowed the gap, capturing 16.5% share with 13,187 sales, just 526 units fewer than Ola
🔧 Root Causes: Strategic Reset and Supply Chain Strains
Two key factors behind the fall:
- Shift to Profitability: Ola began prioritizing margin over volume after massive expansion, leading to reduced promotional discounting and slower aggressive growth efforts
- Rare Earth Magnet Shortage: Disruptions due to China’s export curbs on critical EV motor components hurt production across the industry, impacting Ola’s supply chain as well The Economic Times
💰 Financial Fallout: Share Prices & Valuation Erode Sharply
- Share price halved, trading at ₹41.20—45% below its ₹76 issue price, wiping out half its market cap (₹18,190 crore)
- Ola Electric posted a Q1 FY26 net loss of ₹428 crore, while revenue dropped nearly 50% to ₹828 crore on deliveries falling from previous-year volumes of 1,25,198 to 68,192 units
📊 Market Share Snapshot: EV 2-Wheeler Segment, July 2025
| OEM | Units Sold | Market Share |
|---|---|---|
| TVS Motor | 22,225 | 21.6% |
| Bajaj Auto | 19,650 | 19.1% |
| Ola Electric | 17,848 | 17.35% |
| Ather Energy | 13,187 | 16.5% |
Ola’s share has shrunk dramatically from last year, with the YTD leadership lost to years of aggressive competition and evolving strategies.
🔍 Why It Matters
- Loss of dominance: Once India’s leading EV scooter brand with over 30–40% share, Ola’s position has eroded due to value-focused strategy and execution slip-ups.
- Ather’s rise: Ather’s growth, backed by the success of its Rizta scooter and expansion in retail footprint, has brought competition head-to-head
- Industry implications: The magnet shortage and competitive shifts underline risks in EV supply chains and strategic pivots.
✅ Final Take
Ola Electric’s market share fall to ~17.3% in July 2025 is a clear indicator of changing dynamics in India’s EV scooter market. As OEMs recalibrate toward profitability, competitors like TVS, Bajaj, and Ather are capitalizing—making the upcoming festive season a pivotal turning point
