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Ola Electric Regains Market Share As Discounts Prop Up Sales

Ola Electric saw a significant rise in October 2024 sales, reaching its highest level this fiscal. The discount strategy enabled a return to growth amid heightened competition.

<div class="paragraphs"><p>October 2024 saw a boost in India's electric two-wheeler sales, with Ola Electric leading at 68% month-on-month growth. Rivals like Bajaj Auto and TVS Motor also reported increases, driven by festive demand. (The S1 X by Ola Electric Mobility. Photo source: Ola Electric/X)</p></div>
October 2024 saw a boost in India's electric two-wheeler sales, with Ola Electric leading at 68% month-on-month growth. Rivals like Bajaj Auto and TVS Motor also reported increases, driven by festive demand. (The S1 X by Ola Electric Mobility. Photo source: Ola Electric/X)

Ola Electric Mobility Ltd. clocked its highest monthly sales so far this fiscal as discounts propped up sales amid a myriad challenges.

Retail sales of India’s largest electric two-wheeler rose 68% over the previous month to 41,605 units in October 2024, as against 24,710 units in September, according to vehicle registration data on the VAHAN portal.

That translated into a market share of 30% as of Nov. 1.

Rivals Bajaj Auto Ltd., TVS Motor Co. Ltd., Ather Energy Ltd., and Hero MotoCorp. Ltd. also saw their monthly sales surge in what is a growing market. According to VAHAN and SMEV data, retail sales of electric two-wheelers rose 53.98% month-on-month to 1,39,031 units in October—the highest since March when the FAME-II EV subsidy scheme expired. Annually, the volumes were up 85%.

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The surge in Ola Electric’s sales in October follows two straight months of declines and a cacophony over its broken after-sales experience that’s only grown louder. The government has issued a show-cause notice over customer complaints and ordered an audit into the machinations of the Bengaluru-based EV maker. A spat between the company’s founder and a stand-up comedian simply stirred the pot further.

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Against that backdrop, Ola Electric launched deep discounts to prop up volumes during the crucial festive season, including retailing an electric scooter at Rs 50,000—much below the price at which a subsidy was claimed. The company said this was a limited run only.

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