The company's market share fell to 27 per cent in September, down from 49 per cent in the first quarter of FY25
Ola Electric share price: It was another day of dismay for Ola Electric as its share price fell by more than 7 per cent on Monday. As of 11:00 am, the share price of Ola Electric was Rs 91.46. The initial high of a stellar debut at the bourses in August has taken a downward trajectory. Its share prices have witnessed a consistent decline. After the share price touched its peak of Rs 138 in mid-August, it started falling, and since then has fallen by 21 per cent.
The past few days haven’t been good for Ola Electric and its founder Bhavish Aggarwal. Its market share fell to 27 per cent in September, down from 49 per cent in the first quarter of FY25. It is losing its market share to its competitors Bajaj Auto, TVS Motors, Ather Energy and Hero MotoCorp. According to a report by Elara Securities, it is expected to lose more.
“Hero+Bajaj+TVS+Ather’s market share further rose in September to an all-time high of 60.3%. Expect this share to rise further with ramp-up in distribution and launch of cheaper-priced scooters, especially incrementally from TVS Motor. Also, the market leader in ICE, Honda Motorcycle and Scooters India (HMSI) is yet to launch an EV scooter, which could reduce Ola’s share further,” the report, released on October 2, mentions.
Ola Electric sold close to 24,000 units in September, significantly down from 40,814-unit sales in July, according to government transportation portal Vahan. Recently turned into a unicorn, its market capitalisation slipped to $5bn from post-IPO $8bn market cap.
Read Outlook Business October Cover Story: What Keeps Bhavish Aggarwal Up at Night—Founder’s Fetish or Place in History?
All of this, at a time when Ola Electric scooters are facing a surge in complaints. Recently, there have been multiple reports of hardware malfunction. Not just that, there are complaints from its customers who subscribed to the company’s paid services plan Ola Care Plus which offers home pick-up and drop-off services. They say that they are facing long delays in accessing those services, reportedly ranging from 30 to 45 days.
According to a Mint report, the Bengaluru-based company receives around 80,000 complaints on a monthly basis, overwhelming its service centers. On some days, the number of complaints even rises to 6,000–7,000, leading to long wait times and overburdening of staff.
Adding to already existing controversies, comedian Kunal Kamra has added a bit of more spice. Taking to X, he has criticised Ola Electric scooters. The spat between him and Bhavish is increasingly becoming interesting, with its customers voicing concerns about the scooters and some even commenting about Bhavish’s rude behaviour.