Ola Electric's share price dropped 5.5% in early trading on Monday after its November sales fell by 33%, reaching 27,746 units. This decline shows the growing competition in the electric vehicle (EV) market, with rivals like TVS and Bajaj Auto getting closer in market share.
However, by around 11:11 am, Ola Electric's shares bounced back, rising 3.01% to ₹90.05.
Despite the drop in sales, Ola Electric still held the top spot in the market with a 25.09% share in November. TVS came second with 23.55%, and Bajaj Auto followed with 22.59%.
In November 2024, Ola Electric maintained its leadership in the electric two-wheeler market with a 25.09% share, despite a 33% drop in sales to 27,746 units. TVS and Bajaj Auto followed with 23.55% and 22.59% shares, respectively. Overall, the EV market saw an 18% decline in registrations compared to October, showing a post-festive slowdown.
Throughout 2024, Ola's market share fluctuated significantly:
- In May, it peaked at 49.8%
- In September, it dropped to 28.6%
- By October, it recovered to 31%
Year-to-date, Ola has sold 392,176 units, holding a 37% share. TVS follows with 19.5%, Bajaj Auto holds 16.6%, and Ather Energy accounts for 11%.
After a strong October driven by festive season sales, most electric two-wheeler manufacturers saw a decline in their vehicle registrations in November.
Total registrations dropped by over 18% month-on-month (MoM) to 1.14 lakh units, but on a year-on-year (YoY) basis, registrations increased by 23.5%.
Financially, Ola reported a net loss of ₹495 crore for Q2 FY25, improving from ₹524 crore last year but widening from ₹347 crore in Q1 FY25. Revenue grew by 39% year-on-year to ₹1,214 crore, but operating losses increased to ₹223 crore from ₹65 crore in the previous quarter.
Ola Electric's EBITDA margin improved to -28.4% from -46% a year ago, showing progress in operational efficiency. However, its shares have fallen sharply over the past three months, underperforming the broader market. On Friday, Ola's shares closed at ₹87.40 on the BSE, down 5.9%, while the Sensex gained 0.96%.
Ola Electric, led by Bhavish Aggarwal, has been facing significant fluctuations in its vehicle sales recently due to rising competition and customer complaints about its after-sales service. The company has been struggling with issues like delayed repairs and inaccurate billing, which have led to thousands of customer complaints. This has been compounded by increased competition from rivals like TVS and Bajaj Auto. In response, Ola Electric plans to expand its sales and service network by adding over 3,000 new showrooms and service centers to address these concerns.
Ather Energy's EV two-wheeler registrations fell by 24% in November, with 12,217 units sold compared to 16,148 units in October. This drop in sales from major players led to an overall decline of over 18% in total EV two-wheeler registrations month-on-month (MoM), with 1.14 lakh units registered. However, on a year-on-year (YoY) basis, registrations rose by 23.5%.
