Ola Electric has seen a notable increase in market share within the electric two-wheeler sector during the ongoing festive season. The company, based in Bengaluru, credited this rise to the growing popularity of its S1 scooter lineup and its rapidly expanding service network. Ola aims to sustain this momentum as the festive period continues through Diwali.
According to government-owned vehicle registration data from Vahan, as of October 15, Ola Electric sold 17,417 electric two-wheelers, securing a 34.9% market share—up from 28.7% last month. The company’s exchange filing emphasized that the S1 series scooters and their extended service reach have played a key role in this growth.
At 3 PM today, Ola Electric shares were trading at Rs 89.5 on the BSE. The S1 series, including the S1 Pro and S1 Air, are priced at Rs 1,34,999 and Rs 1,07,499, respectively, while the more affordable S1 X series, with its 2 kWh, 3 kWh, and 4 kWh battery options, is priced at Rs 74,999, Rs 87,999, and Rs 1,01,999, respectively.
However, Ola has recently come under the radar of the Automotive Research Association of India (ARAI) due to its pricing strategy. The agency raised concerns after Ola launched its ‘BOSS’ sale last week, offering the S1 X 2 kWh model at a heavily discounted price of Rs 49,999, along with benefits worth up to Rs 25,000 on the broader S1 portfolio, without notifying ARAI in advance.
While the company continues to see an uptick in sales, it has also been dealing with rising customer complaints. Issues surrounding after-sales service, software glitches, and hardware defects have contributed to a decline in market share over recent months. The Central Consumer Protection Authority (CCPA) has since issued a show-cause notice to Ola, accusing it of misleading advertisements and unfair trade practices.
To combat these challenges, CEO Bhavish Aggarwal announced a Hyperservice campaign last month, pledging to double the number of service centres to 1,000 by December. The company also plans to onboard 10,000 partners by 2025 through its Network Partner programme, aimed at enhancing both sales and service.
Despite its recent growth, Ola faced a dip in market capitalisation, which fell below $5 billion last week following a public spat between Aggarwal and comedian Kunal Kamra, who criticized the quality of Ola scooters on social media. Additionally, the company reported a consolidated net loss of Rs 347 crore for the June quarter, compared to a Rs 267 crore loss in the same period last year, though operating revenue grew by 32.3% to Rs 1,644 crore.