Ola's BOSS sale offers discounts as e-scooter sales fall, competition grows

Ola’s BOSS sale offers discounts as e-scooter sales fall, competition grows | Company News

Last updated: 2024/10/03 at 5:31 AM

Contents

Ola Electric’s market leadership faces challenges Bajaj, TVS racing ahead with e-scooter market share Bajaj closes the gap in electric vehicle market

3 min read Last Updated : Oct 03 2024 | 10:57 AM IST

Ola Electric has unveiled its Biggest Ola Season Sale, also called BOSS, offering attractive deals and exclusive benefits. The sale begins today (October 3), CEO Bhavish Aggarwal announced on X (formerly Twitter). One of the key offers includes the S1 scooter priced as low as Rs 49,999.

Ola’s sales took a hit in September, marking the lowest monthly figures of the year with 23,965 vehicles sold. This was the second consecutive month of decline.

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Ola Electric’s market leadership faces challenges

Ola’s market share has been shrinking for five months straight, dropping to 27 per cent in September from over 50 per cent in April.

During this period, competitors like TVS Motor and Bajaj Auto have closed the gap, consistently gaining market share for several months. Analysts believe that Ola’s weakening lead is due to its rivals launching models priced competitively and its underperforming service network, leading to increasing backlogs of scooters.

According to HSBC analysts, Ola’s service quality is a crucial factor in maintaining its market position.

Bajaj, TVS racing ahead with e-scooter market share

India’s leading electric scooter company, Ola Electric, recorded its lowest monthly sales of the year in September, according to government data. The SoftBank-backed firm is facing increased competition from smaller rivals and issues with its service network.

Over the past year, Bajaj increased its Chetak e-scooter dealership network from around 100 to over 500 by June, while Ola’s dealership count only rose slightly from 750 to 800.

Earlier this week, Business Standard reported that Bajaj Auto has emerged as the leader in India’s electric vehicle market by monthly sales, across all categories, surpassing 25,000 units in September. This success is attributed to the company’s efforts in expanding its distribution network and the consistent demand for electric three-wheelers.

Bajaj closes the gap in electric vehicle market

According to the latest Vahan data, Bajaj recorded sales of 17,570 electric two-wheelers, 4,575 three-wheelers, and 3,000 Yulu low-speed electric bikes in September. The Yulu bikes, which do not require a licence and are not registered on Vahan, are manufactured by Bajaj for a company in which it holds a stake.

Bajaj followed closely with 24,817 units, including electric two-wheelers, three-wheelers, and Yulu bikes. While Ola Electric, led by Bhavish Aggarwal, retained its top position in the electric two-wheeler segment with 22,917 registrations in September, Bajaj Auto has significantly closed the gap. Bajaj is now the second-largest player in the segment, surpassing TVS Motor, which holds a 20 per cent market share.

(With agency inputs)

First Published: Oct 03 2024 | 10:57 AM IST

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