Everyone thinks that Ola Electric disrupted the Electric Two-Wheeler (E2W) market in India. But in reality, disruption starts when, out of many players, one emerges as the clear winner. Undoubtedly, Ola Electric gained big when the competition was minimal, which makes its early rise less remarkable than it appeared. Ola Founder Bhavish Aggarwal even once tweeted on X, “All of ICE is a sitting duck. If they don’t lead the transition, others will do it for them.”
However, as competition heated up, the company that was once, in the absence of serious rivals, downplayed established 2W automobile companies, has increasingly lost its plot. Poor product quality, weak service networks, governance concerns, and recurring operational issues have all weighed on its performance. In contrast, Smart players didn’t enter the segment outright; they observed their competitors and then ventured in gradually.
In October 2025, Bajaj Auto led the market with a 21.8% share, followed by TVS Motor at 20.6% and Ather at 19.6%. Ola Electric, with 11.2%, is barely ahead of Hero MotoCorp at 11.1%. While Bajaj and TVS have built scale on the back of their strong brand reputations, Ather has surged on the strength of its consistent product quality.
Let’s take a closer look at how these companies are positioned to benefit from the EV transition.
#1 Bajaj Auto: The market leader with 21.8% EV market share
Bajaj Auto, a part of the Bajaj Group, is among India’s largest 2W manufacturers, with 16.6% market share in FY25. The company manufactures and sells a wide variety of vehicles that account for 100% of its business activity and 97% of its turnover. Key brand families include Pulsar, Dominar, KTM, Husqvarna, Triumph, Boxer, CT, Platina, Discover, and Freedom.
The “tortoise” wins: How Bajaj scaled without the noise
The EV portfolio has rapidly scaled to become the country’s largest 2W and 3W business by revenue in about three years. The company generated over ₹55 billion in EV revenue in FY2025, accounting for 20% of domestic sales. Bajaj’s EV sales lead is driven by Chetak, which emerged as the #1 electric scooter in FY25.
Domestic sales of the Chetak EV reached 260,033 units in FY25, representing 125% growth year-on-year. Rapid expansion of the network to over 4,000 touchpoints propelled the Chetak business to leadership. Bajaj E3W business also stayed on a strong footing, with (Earnings before Interest, Tax, Depreciation and Amortization) 4X growth in volume, and 35.8% market share.
Chetak’s network strength and better unit economics drive profitability
The company’s overall EV portfolio performed strongly in Q2 FY26. The EV portfolio collectively delivered almost 20% of domestic revenue in Q2. The portfolio hit a double-digit EBITDA margin driven by a growing proportion of E2W and better unit economics on the Chetak models. Chetak is nearly EBITDA-neutral compared to the EBITDA loss a year ago.
The Chetak network continues to grow, currently standing at 390 exclusive stores and 4,000 points of sale across 800 cities. Bajaj now plans to focus on regaining the momentum in both the E2W and E3W segments. The company aims to maintain leadership on the back of new launches early next year.
#2 TVS Motor: 20.6% EV market share with iQube at the centre
TVS Motor, a part of TVS Group, is among the largest two-wheeler manufacturers in India. The company manufactures a wide range of two-wheelers and three-wheelers, and is the only domestic manufacturer of mopeds. TVS has a production capacity of 6.1 million two-wheelers and 0.2 million three-wheelers.
Building dominance with iQube at the core
TVS has been investing heavily in research and development, focusing on technological innovation and product development. Since launching its first E2W, TVS iQube, in January 2020, it has expanded its presence across India. TVS is now also the second largest player in the E2W segment, with a 20.6% market share.
With the iQube, TVS struck the right balance between pricing, reliability, and range, something its peers initially struggled with. TVS iQube model is now the market leader, having sold over 700,000 units. Additionally, to maintain momentum, TVS has expanded the TVS iQube portfolio to six variants, making it one of the widest and most compelling offerings in the segment.
TVS Deepens its push in electric mobility
Today, EVs accounted for 17.31% of TVS’s total scooter volumes in FY25, up from 14.10% in FY24. The company achieved its highest-ever quarterly sales in the EV segment in Q1FY26, alongside its Internal Combustion Engine (ICE) vehicles. E2W sales grew 7% to 80,000 units in the quarter ended September 2025, and 150,000 units in the first half of FY26.
TVS is also performing well in the EV commercial mobility business (3W). The company’s VAHAN share in the E3W category has surpassed 11%, and management aims to be a prominent player in this segment. Currently, 30% of the L5 category (larger and powerful) 3W are already electric, and TVS is gaining market share month after month.
The product offensive: Orbiter and the European push
To maintain momentum, TVS has also launched new products. TVS Orbiter (E2W) is positioned as India’s smart, sustainable, and urban EV for young urbanites. Launched at an attractive price of ₹99,900, this product is in a different segment from the existing iQube scooter. Sales began in Karnataka, with availability planned across India by the start of Q4.
The Orbiter is expected to further accelerate the E2W business. In Q1FY26, EV revenue accounted for 10.7% (₹12.7 billion) of TVS revenue (₹119 billion), with a positive contribution margin. The company views the EV business as an investment in future technologies and products, prioritizing overall company EBITDA growth over immediate unit-level profits.
Expanding into global and e3W EV markets
TVS also plans to launch its premium EV and internal combustion engine (ICE) range in France and Italy. Models including Jupiter 125, Ntorq, iQube S, TVS X, Ronin 250, Apache RR 310, and Apache RTR 310 will be available in Europe. It has also launched the electric BMW CE 02, targeting global markets in the E2W segment.
TVS also launched its first electric three-wheeler, the TVS King Kargo HD EV, and has active plans to expand into electric cargo 3Ws. It plans to further scale its presence, aiming to increase its share in the EV E3W category.
#3 Ather Energy: The Underdog EV Player with 19.6% Market Share
Ather Energy is a pure-play E2W manufacturer, with an integrated ecosystem. The company controls over 100% of its software stack and 80% of key hardware. Although it has a market share of 19.6% (as of October 2025) in India, with a leading position in South India (25%) (as of Q2 of FY26)
The company sources 99% of its components domestically, in line with the government’s “Make in India” mandate. Its manufacturing plant at Hosur (Tamil Nadu) has an annual installed capacity of 420,000 e2W and 379,800 battery packs.
Ather has a wide footprint, although concentrated, with 524 stores across its network. Ather follows an asset-light model, in which partners invest and bear the expenses of stores and service centers. Ather, on the other hand, delivers brand building and marketing support.
R&D depth and integrated ecosystem
Ather’s biggest differentiation is its investment in research and development (R&D). With 45% of Ather’s employees in R&D, it is one of the largest e2W companies worldwide, boasting such a large R&D team. This focus enables cost optimization, such as a 30% reduction in bill-of-materials costs for the Ather 450X LR.
It has a diversified E2W portfolio, including the Ather 450 and Ather Rizta, with the former accounting for 57% of the total sales volume as of FY25. Its proprietary software, AtherStack, digitally powers its products from ride statistics to over-the-air updates.
The AtherStack Pro Pack bundle, which unlocks advanced features, is purchased by 89% of its customers and accounts for 12% of the revenue in Q2 FY26. Ather expects the accessory revenue to continue compounding and improving. In addition, Ather also boasts of India’s leading e2W fast-charging network through Ather Grid.
Its focus on the key market, integrated manufacturing, and its own charging network, along with Ola’s loss of market share, allowed it to expand its presence. It currently has 4,322 charging points in over 360 cities across India, Nepal, and Sri Lanka. Apart from this, the company also offers accessories, such as smart helmets, which provide higher margins.
Financial turnaround: From cash burn to operating leverage
From a financial standpoint, Ather’s revenue increased 64% year-over-year to ₹15.4 billion in the first half of FY26, driven by a 78% rise in volume to 111,673 units. Volume growth was led by an increase in market share from 10.2% in H1FY25 to 15.8% in H1FY26. Although sales increased, revenue per vehicle sales fell 8.5% to Rs 120,821.
But with volume growth, operating leverage kicked in. EBITDA margin increased 1300 bps to -12% from -25% in the half-year period last year. As a result, net loss fell by 12.6% to ₹3.3 billion. Management believes operating leverage will continue to play out well, taking the company to a sustainable position over the coming few quarters.
Scaling presence and broadening product portfolio
Looking ahead, Ather aims to reach profitability through operating leverage driven by scale. Having optimized costs in its existing models, Ather has now rolled out the EL platform, which aims to further improve cost efficiency while enabling scalability across future products. Ather also expects the service revenue to expand in line with volume growth.
The higher-margin accessories business is also likely to see a meaningful increase. Ather is also expanding in North India, adding new stores and aiming to reach 700 by the end of this year. It also plans to launch a 150-180 cc motorcycle. Given the demand, Ather is also expanding its annual capacity by 0.5 million to 1.4 million E2W.
Also, Ather launched its fastest charger, a 6-kilowatt unit that is 2x faster than the current fast charger and delivers a day’s charge (30 km) in 10 minutes. This charger aims to enable intercity rides, connecting routes such as Mumbai-Pune, Bengaluru-Mysore, and Chennai-Pondicherry.
What the valuation suggests
Both companies outperform the industry on profitability, with stronger RoCE and RoE profiles that set them apart. Bajaj posts higher overall return ratios than TVS, particularly on RoCE, reflecting its superior capital efficiency, while TVS boasts a leading ROE, reflecting its stronger growth.
That’s why TVS Motor continues to trade at a premium multiple to its peers and to its own 10-year median valuation, supported by its sustained, industry-beating growth. Bajaj Auto is trading in line with the broader industry but at a nearly 50% premium to its median multiple.
Valuation Assessment (X)
| Companies | Price-to-Earnings | 10-Year Median | RoCE | RoE |
| TVS Motor | 63.0 | 48.3 | 15.4 | 28.4 |
| Bajaj Auto | 30.4 | 20.2 | 28.1 | 22.8 |
| Industry P/E | 30.2 | 17.6 | 21.1 | |
Source: Screener.In
Ather is newly listed and remains loss-making, so we have used the price-to-sales (P/S) metric for comparison. On this basis, Ather’s P/S multiple of 9.1x is almost twice that of Bajaj (4.7x) and TVS (3.4x).
To conclude, the EV landscape is no longer defined by early-mover noise but by companies that have scaled with discipline, product strength, and steady execution. Bajaj and TVS have built their positions through brand trust, strong distribution, and operational depth, while Ather has carved out space through innovation and an integrated ecosystem.
As the market enters its next phase, these three players appear best placed to shape the direction of India’s electric two-wheeler transition.
Disclaimer
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data was not available have we used an alternate but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
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