56% Drop In Sales: Is Bhavish Agarwal's Ola Dream Over? Brokerage Report

Ola Electric, a dominant player in India's electric two-wheeler (E2W) market, witnessed a 56% Year-on-Year (YoY) decline in sales, delivering 23,430 units in March 2025, compared to 53,641 units in the same month last year. The decline comes despite the overall growth of the EV sector, signaling potential challenges as competition intensifies and market dynamics shift, according to a research report by Choice Equity.

Reasons behind sales drop

The same report highlights that Ola Electric's marketshare erosion is attributed to multiple factors, including evolving consumer preferences, heightened competition from established and emerging players, and supply chain disruptions. The company's flagship S1 series, which had previously been a key contributor to its sales volume, now faces stiff competition from brands such as Ather Energy, TVS, and Bajaj Auto.

However, Ola Electric attributed its sales decline to disruptions caused by its transition to in-house vehicle registrations, which began in February. The company also claimed that demand remains strong across both urban and rural markets despite the drop in sales.

Notably, Ola Electric faced registration delays in February due to renegotiations with third-party service providers Rosmerta Digital Services Private Limited and Shimnit India Private Limited, impacting its monthly Vahan registration figures. In a statement on Tuesday, the company assured that it has nearly cleared the backlog from February and expects to complete the remaining February-March registrations in April 2025. 

Competitors upping the ante

Bajaj Auto, led by Rajiv Bajaj, emerged as a top e-scooter seller in March, registering a 93% YoY growth, selling 34,863 units. The company claimed that its newly launched Chetak scooter ohas helped improve cost efficiencies and profit margins, the company claimed. 

Similarly, TVS Motor reported a 14 percent YoY increase, with sales reaching 30,454 units in March. TVS’s iQube, now available with a smaller battery pack, has gained significant traction among buyers, according to the company. 

Meanwhile, Hero MotoCorp, saw an 81 percent YoY jump in Vida sales in March at 7,977 units.