Ola Electric sales slump to three-year low; TVS retakes lead in November

Last month’s electric vehicle sales data reiterated Ola Electric’s year-long struggle to regain lost market share as the Bhavish Aggarwal-led company continued to see its sales plunge since January. In November, the firm only sold 7,567 units, capturing a mere 7.2% of the EV market share. 

To put this number in context, the company sold 22,656 units in January, retaking its market lead position with a 25% share of total EVs sold during this period. However, since then, the company has significantly lost momentum for a myriad of reasons, including rising customer service concerns, concerns around product quality, and rising competition from established automakers like TVS Motor and Bajaj Auto.

However, Aggarwal remains unfazed. During the company’s second-quarter earnings call, earlier this month, he pointed out that many OEMs (original equipment manufacturers) have chosen to pursue short-term market share through aggressive discounting and elevated channel incentives, at the cost of profitability—a strategy Ola Electric itself has been accused of in the past. 

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Amidst the company’s thinning market share, peer Ather Energy has become the third-largest EV-maker in the country, in terms of sales. In November, the company held on to its market lead. During the month, the Tarun Mehta-led company sold 18,356 units, capturing a 17.4% market share. 

While this is a 41.6% increase from its sales in the year-ago period, the company saw its sales fall compared to October, when it sold 26,713 units, its highest sales ever. However, it is to be noted that October marked the end of the festive season—a period during which automakers see rising demand for vehicles due to auspicious festivals falling between September and October. 

Meanwhile, between legacy automakers, the competition thickened. In November, TVS Motor took back the market lead from Bajaj Auto. The Chetak-maker sold 27,382 units during the month, garnering a 26% market share, while the iQube-maker sold 23,097 units, capturing a 21.9% market share. 

Historically, November and December have recorded lower electric vehicle sales compared to October. Total electric vehicle sales stood at 1,05,291 units during this month, a 27.2% decline from last month’s sales numbers. However, this month’s sales were also lower year-on-year. In November 2024, total EV sales stood at 1,19,996 units. 

(All data as of November 28th)

(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director in Ola Electric)

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Edited by Jyoti Narayan