Ola Electric has been facing multiple challenges over the last few months. Challenges have been in the form of regulatory challenges, showroom shutdowns etc. Regular negative reports have been having an effect on investor sentiments and its share price have been fluctuating regularly. So much so that they went down by more than 7 per cent both on the NSE and the BSE. The drop was witnessed after Ola Electric said that its vehicle registration service provider Rosmerta Digital Services Ltd has sought the initiation of insolvency proceedings against its wholly-owned arm Ola Electric Technologies Pvt Ltd.
However this morning the shares of Ola Electric Mobility Ltd surged 10.01 percent to hit an intraday high of Rs 51.63 per share on the NSE. A total of 40.32 lakh shares changed hands today of Ola Electric Mobility Ltd on the BSE generating a total turnover of Rs 20.29 crore. In volume terms, over 8 crore shares of the company were traded on the NSE till noon on Tuesday. As a result of this the company's market valuation rose by Rs 2,421.55 crore to Rs 23,112.75 crore from Rs 20,691.20 crore a day earlier.
Experts point out that Ola Electric's first-mover advantage and strong market presence in the EV market could ease the process of restoring credibility. The response could include restructuring and optimising the operations; these can potentially reinforce Ola Electric's commitment to employees and customers. 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.
Ola Electric has already started feeling the heat in the market 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 recently.
There is no doubt that any unfavourable development about a public company will definitely have a short-term impact on the company’s brand image. During this challenging period, the leadership team engages in transparent communication and proactive engagement with the employees and the other stakeholders in the process of navigating the events around the issues. Strong companies emerge stronger while handling such crisis situations.
'The news around layoffs in the recent times could unsettle stakeholders. Attracting talent to the organisation and retaining the top players become challenging. The unfortunate part in such situations is that the perception gets coloured fast without getting into the details and assessing the real impact on the company's sustainability. The challenges compound when the company is well-known and on top-of-mind for the market,” remarked Aditya Narayan Mishra, MD and CEO of CIEL HR.
In comparison to this, its competitors Ola Electric shares in India's electric two-wheeler market has been constantly declining. Bajaj Auto has become the market leader in India's electric 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. In order to remain competitive Ola Electric will need to come up with a new strategy to be on the growth path or else they may continue to face challenges.
