Ola Electric’s retail sales have fallen to their weakest level in three years, marking a sharp reversal for the electric two-wheeler maker after months of slowing demand. The company sold 7,383 units in November up to the 27th, putting it on track for its lowest monthly volume since September 2022, when registrations slipped below 8,500 units.
Sales Slump and Intensifying Competition
The slump is significant when compared to the company’s record sales of 53,647 units in March 2024. Since then, its retail numbers have fallen by about 80%, pushing the company down to fifth place in the electric scooter market. Ola Electric, which once dominated segment sales soon after its entry in 2021, has been steadily losing share to established rivals.
In November, TVS Motor posted 26,401 units, followed by Bajaj Auto at 22,374, Ather Energy at 17,801 and Hero MotoCorp at 10,126. The last time Ola Electric reported monthly sales this low was in February at 8,673 units, a period marked by challenges in vehicle registrations.
Industry executives say multiple factors are weighing on the company. Customer dissatisfaction over product quality and after-sales support has been persistent, while competition has intensified as traditional two-wheeler makers expand their electric portfolios. TVS and Bajaj, in particular, have strengthened their presence with new variants across price points, widening their reach in both urban and non-urban markets.
Ola Electric had held the top position for much of 2024, but momentum has weakened through the year. Dealers and analysts say the company’s delay in rolling out expected new products has also contributed to the slowdown, allowing rivals to build traction.
Quality Concerns and Regulatory Scrutiny Impact Financials
Regulatory scrutiny has added to the pressure. The company is facing inquiries from the Central Consumer Protection Authority, the ministry of road transport and highways, and several state governments over product quality concerns and discrepancies related to sales and trade certificates. In Goa, Vahan registrations of Ola vehicles remain suspended, and the firm has been issued a show-cause notice over the possible cancellation of its trade certificate. Similar issues have been flagged by transport authorities elsewhere.
The company did not respond to queries sent by FE.
The financial impact has been visible. Revenue from operations declined 43% year-on-year to Rs 690 crore in the September quarter, down from Rs 1,214 crore a year earlier.
The company has already revised its sales outlook for the second half of the year to about 100,000 units, bringing its full-year estimate to around 221,000 units. The earlier projection ranged between 325,000 and 375,000 units.
