Ola Electric’s Market Share Crash: From 39.5% to 5.87% in Just Two Years

In January 2024, Ola Electric commanded 39.5% of India’s electric two-wheeler (E2W) market.

By January 2026, that figure had dropped to 5.9%.

A decline of this scale would be striking in any industry. It is even more significant in a market that is still expanding.

India’s electric two-wheeler segment grew an estimated 20–25% in 2025, yet one of its earliest category leaders saw its dominance erode at record speed.

This is not a story of falling demand. It is a story of shifting trust.

Market Share Snapshot

• January 2024: 39.5%

• January 2025: 24.8%

• January 2026: 5.9%

A fall from near dominance to single digits in two years, in a market that is still growing.

1. The Scale of the Decline

At its peak, Ola Electric controlled nearly 40% of India’s electric two-wheeler (E2W) market. Four out of every ten electric scooters registered in January 2024 carried the Ola badge.

By January 2026, that number dropped to 5.9%.

The decline becomes sharper when placed in context:

• CY2024 sales: 4.07 lakh units

• CY2025 sales: 1,96,767 units

• A near 50% drop in annual volume

Monthly registrations fell from 30,000+ at peak to just 5,488 units in January 2026.

Meanwhile, India’s overall E2W market grew approximately 20–25% in 2025. Demand did not disappear. Market share shifted.

2. Trust Breakdown: Service, Fires, and Complaints

Battery fire incidents began drawing attention in 2022, including a recall of 1,441 scooters. While isolated incidents affect multiple EV brands, recurring visibility and response management became central to the narrative.

More damaging was the service experience.

Between September 2023 and August 2024:

• 10,644 complaints were filed with the National Consumer Helpline

• 3,389 related to service delays

• 1,899 related to delivery delays

• 1,459 related to services paid for but not delivered

The Central Consumer Protection Authority (CCPA) issued a show-cause notice in October 2024.

An independent verification exercise reportedly found a majority of contacted customers stating their issues remained unresolved.

Regulatory scrutiny, public social media disputes, and service backlog images amplified reputational concerns.

Trust erosion in a first-time EV buyer market has compounding effects. Read more- Ola Electric’s Rise and Fall (2025): What Went Wrong With India’s EV Pioneer?

3. Financial Impact

Ola Electric listed at ₹76 per share in August 2024 and peaked at ₹157 shortly after. By February 2026, the stock trades near ₹30.

Q3 FY26 (Oct–Dec 2025):

• Revenue: ₹470 crore (down from ₹828 crore in Q1 FY26)

• Net loss: ₹487 crore

Market capitalization now stands significantly below peak levels, while competitors like Ather Energy command higher valuations.

Management has acknowledged service challenges impacting brand trust — a shift from earlier positioning.

4. Competitors Capitalized

As Ola’s share declined, legacy OEMs expanded:

• TVS Motor: 24.2% share (2,95,315 units in 2025)

• Bajaj Auto: 21.9%

• Ather Energy: 16.2% (up from 11.3%)

• Hero MotoCorp: 8.8% (nearly doubled share)

• Ola Electric: 16.1% for full-year 2025

TVS Motor became the number one electric two-wheeler brand in India, selling 2,95,315 units, accounting for a 24.2% share. Bajaj Auto came in second at 21.9%.

Ather Energy jumped from 11.3% in 2024 to 16.2% in 2025.

Hero MotoCorp nearly doubled its share from 3.9% to 8.8%. And Ola Electric finished at 16.1% – essentially in a statistical tie with Ather, a brand they used to outsell 3:1.

The reason legacy brands like TVS and Bajaj gained is simple: they have service networks in every district of India.

When a first-time EV buyer got nervous about fires and read about 10,000 complaints, they picked the brand where someone would pick up the phone and fix their problem.

That’s not glamorous, but that’s what trust looks like in a market like India.

5. Technology Strength Remains Real

Despite operational setbacks, Ola’s technology stack remains ambitious:

• Roadster X motorcycle lineup, including a 501 km certified range variant

• 4680 Bharat Cell, domestically manufactured

• Dry electrode manufacturing process at Tamil Nadu Gigafactory

• Ferrite-based motor without rare-earth magnets

• MoveOS 6 with OTA capabilities

• 2.5 GWh installed cell capacity, targeting 6 GWh

Vertical integration at this scale is rare among Indian EV startups.

The challenge: execution consistency. Delayed deliveries and scooter segment service issues limit the immediate impact of new product launches.

6. The Breakeven Gap

To reach EBITDA breakeven, the company reportedly needs approximately 50,000 units sold per month.

January 2026 registrations: 5,488 units.

The gap is operational, not technological.

7. What Must Change

Three structural shifts are critical:

1. Service Normalization at Scale
   Not pilot programs, but measurable resolution timelines across Tier 2 and Tier 3 cities.

2. Cultural Reset at Leadership Level
   Public positioning during crises shapes long-term brand perception.

3. Talent Retention and Stability
   Sustained quality improvement requires institutional continuity.

8. Final Assessment

The drop from 39.5% to 5.9% within two years represents one of the sharpest market share corrections in Indian consumer technology.

The broader EV market is expanding. Capital investment in cell manufacturing and motor innovation is meaningful.

The technological ambition is visible.

However, markets reward reliability over rhetoric.

Until ownership experience matches product ambition, recovery will remain difficult, regardless of range figures or factory capacity.

The data signals a clear message: operational trust must precede expansion. Read more – Electric Scooter Sales – January 2026: Brand-wise, Market Share & Trends

Data sourced from VAHAN portal, BSE/NSE filings, Ola Electric quarterly investor reports, and published media reports. February 2026.

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