Ola Electric Faces Decline in Market Share and Rising Complaints

Ola Electric is currently experiencing significant challenges as its market share fell to 27 percent in September, a substantial drop from 49 percent in the first quarter of FY25. This decline coincides with a steep fall in the company’s share price, which decreased by more than 7 percent on Monday, bringing the share price to Rs 91.46 by 11:00 am. Ola Electric had initially witnessed a successful debut with its stock peaking at Rs 138 in mid-August.

The company’s weakening market position is compounded by stiff competition from rivals like Bajaj Auto, TVS Motors, Ather Energy, and Hero MotoCorp. A report by Elara Securities further suggests that Ola’s market share could decline even more as competitors like TVS Motor expand their distribution networks and introduce lower-priced scooters. The report also notes that Honda Motorcycle and Scooters India (HMSI), a major player in internal combustion engine vehicles, has yet to launch an electric vehicle, which could further impact Ola’s market share.

In September, Ola Electric’s sales figures showed a decline with approximately 24,000 units sold, a notable decrease from the 40,814 units sold in July, as reported by the government transportation portal Vahan. The company, which recently attained unicorn status, has seen its market capitalization fall dramatically from $8 billion post-IPO to $5 billion.

Compounding these challenges, Ola Electric scooters have been the subject of numerous customer complaints regarding hardware malfunctions and service delays. The company’s premium service, Ola Care Plus, has faced criticism for long wait times of 30 to 45 days for home pick-up and drop-off services. According to a report by Mint, the company receives approximately 80,000 complaints monthly, with peaks of 6,000 to 7,000 complaints on certain days, creating strain on service centers and staff.

Adding to these difficulties, an ongoing public spat between Ola Electric’s founder, Bhavish Aggarwal, and an unnamed critic on social media platform X has captured public attention. These controversies, according to some customers, also include concerns over Aggarwal’s reportedly abrasive customer relations manner.