Ola Electric continues to hog headlines with reports that the company has been facing regulatory issues and showroom shutdowns. The negative reports have impacted investor sentiments and the shares of the company have been constantly declining.
A Bloomberg report had earlier stated that the company was facing scrutiny from the government for violating India's Motor Vehicle Act Ola Electric. The company vehemently denied any violation.
According to market reports, many showrooms of Ola Electric lacked the necessary trade certificates under the Motor Vehicles Act to sell, display, or offer test rides of unregistered two-wheelers.
Ola Electric has started feeling the heat as Bajaj Auto and TVS have managed to hog a major share of the electric two-wheeler market in recent months. This, along with service challenges and slowing down of growth, had also led to the company laying off more than 1,200 employees.
As per market reports, Bajaj Auto has become the market leader in India's electric two-wheeler (e-two-wheeler) market. Bajaj Auto's brand Bajaj Chetak became the top-selling electric two-wheeler brand in the country in December 2024 , selling 18,276 units, followed by TVS iQube with 17,212 units. Ola Electric was third with 13,769 units. In February 2025 too, Bajaj Auto continued to be in top position, with a market share of 28 per cent. Ola Electric failed to match the brand value, sales, distribution and pricing strategies of Bajaj.
READ MORE: What does the road ahead hold for Ola Electric?
THE WEEK recently pointed out that despite the first mover advantage, Ola Electric is facing stiff competition from major players who have been in the two-wheeler and scooter segment for decades such as Bajaj Auto and TVS. Ola wanted to have a Tesla-like model in India which may not work in the long run. In the case of Tesla, one can order online and get delivery without having to visit the physical stores. This may not work in India, especially in rural areas. Ola Electric will need to come up with a new strategy to be on the growth path.
For a new entrant like Ola Electric, efforts should have gone into improving its service in terms of quality and reach. Even if a company has a good quality product, it is also important to ensure the customers are provided good service. Companies such as Bajaj Auto and TVS have greater reach and their service centres can be found in every nook and corner of the country. For Ola Electric, it would be a while before its service quality and reach improves.
Ola Electric is still not profitable unlike its competitors though they have a large R&D team. There is also pressure on the company to keep the costs under control. Being the first mover in the market, expectations are also very high from the customers and hence if the service is not up to the mark the brand gets a hit, and profitability and growth will be affected.
