Shares of Ola Electric Mobility Ltd dropped 1.9% on Wednesday, reaching a new all‑time low of Rs 41.22, following a decline in market share and overall sales in Q1 FY26.
Ola Electric’s two‑wheeler EV sales fell approximately 47% year‑on‑year to 57,000 units in the first quarter (April–June), Mint reported, citing data from the government’s Vahan portal.
During the same period, legacy players’ sales doubled. TVS Motor led the electric two‑wheeler market in Q1 with 68,682 units sold, followed by Pune‑based Bajaj Auto Ltd which sold 62,629 units, according to Vahan data. Ola’s upstart rival Ather Energy, which went public in May, more than doubled its sales year‑on‑year in Q1 to over 40,000 electric scooters.
Overall, the electric two‑wheeler market grew 31% year‑on‑year in the first quarter to 291,294 units. TVS held 24% of the market, Bajaj 22% and Ola Electric 20 %. In the first three months of the fiscal year, Ather held a 14% market share.
The Bhavish Aggarwal‑led start‑up’s market share also decreased to approximately 20% in Q1 from over 50% in Q1 FY25.
EV Rankings Reshuffle
In May the rankings in India’s electric two‑wheeler segment witnessed a notable reshuffle.
TVS Motor and Bajaj Auto grew their market shares to 25% and 22.6% respectively in May despite marginal declines in sales volume. Ola Electric, which had been market leader just over a year ago, saw its share shrink to 20% in the first 26 days of May, down from 22.1% in April, according to Vahan data.
The start‑up registered 15,221 vehicles during the period, a steep 60% drop from 37,388 units in May 2023. Similarly, Ather Energy’s market share fell to 13.1% in May from 14.9% in April, with registrations down to 9,962 from 13,287 over the same period.
Ola Electric Raises Fresh Capital
In parallel, Ola Electric has received board approval for a new fundraising round, just nine months after its IPO. The EV maker will raise up to Rs 1,700 crore through the issuance of non‑convertible debentures and other debt securities, as per a filing made on Thursday.
The funds will be raised in one or more tranches, though the company which continues to face regulatory scrutiny, operational challenges and softening investor sentiment has not disclosed the intended use of proceeds.
