Ola’s sales took a hit in September, marking the lowest monthly figures of the year with 23,965 vehicles sold. This was the second consecutive month of decline.
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Ola Electric’s market leadership faces challenges
Ola’s market share has been shrinking for five consecutive months, falling to 27 per cent in September from over 50 per cent in April.
During this period, competitors like TVS Motor and Bajaj Auto have closed the gap, steadily gaining market share for several months. Analysts believe the weakening of Ola’s lead is due to its rivals launching competitively priced models and its underperforming service network, leading to a rise in scooter hoarding.
According to HSBC analysts, Ola’s service quality is a crucial factor in maintaining its market position.
Bajaj and TVS advance electric scooter market share
India’s leading electric scooter company, Ola Electric, posted its lowest monthly sales of the year in September, according to government data. The SoftBank-backed firm faces increased competition from smaller rivals and problems with its service network.
Over the past year, Bajaj has increased its network of Chetak electric scooter dealerships from around 100 to over 500 in June, while the number of Ola dealerships has only increased slightly from 750 to 800.
Earlier this week, Business Standard reported that Bajaj Auto has emerged as the leader in India’s electric vehicle market by monthly sales, across all categories, surpassing 25,000 units in September. This success is attributed to the company’s efforts to expand its distribution network and the constant demand for electric three-wheelers.
Bajaj closes the gap in the electric vehicle market
According to the latest data from Vahan, Bajaj recorded sales of 17,570 electric two-wheelers, 4,575 three-wheelers and 3,000 Yulu low-speed electric bikes in September. Yulu bikes, which do not require a license and are not registered with Vahan, are manufactured by Bajaj for a company in which it has a stake.
Bajaj followed closely with 24,817 units, including electric two- and three-wheelers and Yulu bikes. While Bhavish Aggarwal-led Ola Electric maintained its top position in the electric two-wheeler segment with 22,917 registrations in September, Bajaj Auto has significantly closed the gap. Bajaj is now the second largest player in the segment, surpassing TVS Motor, which has a 20 per cent market share.
(With contributions from the agency)
First published: October 3, 2024 | 10:57 am IS
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