Ola Electric's market share falls out of the top five in February, and its stock reaches a record low
New Delhi: Ola Electric has slipped out of the top
five in India’s electric two-wheeler market by monthly sales volumes, with
Greaves Electric Mobility overtaking it in February, according to data from the
government’s Vahan portal.
The Bengaluru-based EV maker sold 3,968 vehicles during the
month, translating into a 3.7% market share. The decline marks a sharp reversal
for the company, which had sold 34,063 scooters in the same month two years
ago.
Greaves Electric Mobility, which markets electric scooters
under the Ampere brand, recorded 4,725 units in sales in February, securing a
4.3% market share.
FAME-II scrutiny
Greaves Electric Mobility was among several firms flagged by
the Government of India for alleged violations of the Faster Adoption and
Manufacturing of Electric Vehicles-II (FAME-II) subsidy norms and was asked to
refund incentives received under the scheme. Other companies similarly flagged
included Hero Electric, Okinawa Autotech, Benling India, AMO Mobility and
Revolt Motors.
Despite such scrutiny in the sector, legacy automakers
continued to strengthen their position in the EV space.
TVS Motor Company retained its leadership position with a
29.4% market share in February, followed by Bajaj Auto at 23.5%.
Meanwhile, Ather Energy, Ola Electric’s closest rival among
pure-play EV makers, sold 20,585 scooters during the month, capturing 19.1% of
the market. Hero MotoCorp also reported improved traction, with sales rising to
12,516 units in February.
Retail reset and financial strain
Ola Electric’s sales decline coincides with a significant
rationalisation of its physical retail footprint. In a recent shareholder
letter, the company said it had reduced its store network to 700 outlets as
part of a “structural reset”, just a year after announcing plans to expand to
4,000 stores nationwide.
Last month, the company indicated it plans to further pare
its physical store count to around 550 by the end of March amid operational
challenges.
Investor sentiment has also weakened. Shares of Ola Electric
opened at an all-time low of Rs 21.2 on the BSE on Monday, representing a 72%
decline from its listing price of Rs 76.
For the quarter ended December 31, 2025, the company
reported a net loss of Rs 487 crore, while operating revenue fell 55%
year-on-year to Rs 470 crore. The widening losses and repeated revisions to
revenue and profitability guidance have weighed on investor confidence.
Diversification push
Led by founder Bhavish Aggarwal, the company is now
seeking to diversify beyond electric scooters. Earlier this year, it entered
the non-automotive energy storage segment with the launch of ‘Shakti’, a
residential battery energy storage system manufactured at its gigafactory in
Krishnagiri, Tamil Nadu.
The product is powered by the company’s indigenously
developed 4680 Bharat Cell, as Ola Electric looks to broaden its business model
amid intensifying competition in India’s fast-evolving EV market.
