Ola Electric’s Market Share Rebounds to 30%, Driven by Festive Demand

Ola Electric Mobility Ltd on Friday reported a 74 per cent rise in vehicle registrations at 41,605 units in October 2024 as compared to the same month last year. The company sold over 50,000 units in October 2024, Ola Electric said in a statement. 

Now, the company’s market share has become around 30 per cent in the two wheeler market. In the last few months, the company has seen a consecutive decline in its market share from 53.6 per cent in April to 27 per cent in September. 

The company attributed the festive season and the increase in EV penetration in Tier 2 and 3 cities as the reasons behind its growth.  

"The festive season has been really strong for us on the back of our expansive portfolio, uptick in consumer demand, and the strengthening of our sales network across India. We have witnessed an increase in EV adoption especially in Tier 2 and 3 markets and we are confident that this positive growth will cascade in the coming months as well,"  a spokesperson of Ola Electric Mobility Ltd said. 

Further, the company mentioned that they have started a campaign to double its company-owned service network to 1,000 centres by December 2024. Also, as part of the network partner programme, it will onboard 10,000 partners across sales and service by the end of 2025. 

This comes at a time when the company’s shares reached an all-time low and was trading below their listing price of Rs 76. On October 29, the shares of the company were trading at Rs 74.8 in BSE.  

Scrutiny on Ola Electric increased after there where customer complaints about the inefficiency at its service centres. Following this, the Central Consumer Protection Authority (CCPA) issued a show cause notice to the company. In an exchange filing on October 7, the company claimed that the notice was received for “alleged violation of consumer rights, misleading advertisement and unfair trade practices.”

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Since then, Ola Electric has highlighted that they solved 99.1 per cent of the complaints have been solved. “We wish to reiterate that Ola Electric has a robust mechanism to address complaints raised with respect to our vehicles. In fact, we wish to emphasize that out of 10,644 complaints that we received from the CCPA, 99.1% of the complaints were resolved to the complete satisfaction of the customer as per Ola Electric’s robust redressal mechanism.”

Ola Electric’s customer complaints also saw comedian Kunal Kamra step in and write about it on social media platform X. This in turn, created a long verbal spat between Ola CEO Bhavish Aggarwal and Kamra.  

(With inputs from PTI)