In a significant shift within India’s electric two-wheeler market, Ola Electric has dropped to the third position in May 2025, overtaken by traditional automakers TVS Motor and Bajaj Auto. This development marks a notable change in the competitive landscape, as legacy manufacturers capitalize on their extensive experience and infrastructure to gain market share in the burgeoning electric vehicle (EV) sector.
Ola Electric, once the market leader with over 50% share just over a year ago, has seen its dominance wane, with its market share plummeting to approximately 20%. This decline is attributed to various operational and regulatory challenges that have hampered the company’s performance. In contrast, TVS Motor and Bajaj Auto have leveraged their established manufacturing capabilities and dealer networks to expand their presence in the EV market.
The broader electric two-wheeler market in India has experienced a slowdown, impacting overall sales figures. However, the strategic initiatives undertaken by TVS and Bajaj, including the launch of new models and competitive pricing strategies, have enabled them to capture a larger share of the market. Their ability to adapt to changing consumer preferences and invest in EV technology has positioned them favorably against newer entrants like Ola Electric.
Ola Electric’s challenges are further compounded by financial pressures. The company reported a wider quarterly loss of ₹564 crore for the October-to-December period, up from ₹376 crore the previous year. This increase in losses is attributed to substantial discounts offered to counter rising competition and expenses incurred to enhance service quality due to regulatory scrutiny.
Despite these setbacks, Ola Electric remains committed to regaining its market position. The company is investing in the development of in-house battery cells and expanding its product portfolio to cater to a broader customer base. Additionally, efforts are being made to improve service quality and address customer concerns, which have been areas of criticism in the past.
As the competition intensifies in India’s electric two-wheeler market, the ability of companies to innovate, manage costs, and deliver quality products and services will be crucial. While legacy players like TVS and Bajaj have gained ground, the dynamic nature of the EV sector means that market positions can shift rapidly, depending on how companies respond to emerging challenges and opportunities.
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