Ola Electric rises 5% intraday as market share increases amid strong sales during the festive season

Bhavish Aggarwal-led Ola Electric shares surged by 5% to hit a high of ₹91.87 per share on the NSE in morning deals. However, the EV stock pared some of its early gains to trade at 2.25% higher at ₹89.43 apiece on the NSE at 1:15 pm.

Ola Electric gains 34% market share in 2-wheeler EV segment

Ola Electric, the country’s largest pure-play EV company, stated in a release that it has started the festive season on a strong note and cemented its market leadership in the electric vehicle two-wheeler segment.

“According to the Vahan portal, Ola Electric recorded more than 15,672 registrations this month so far (as of October 14) with a market share of 34%,” Ola Electric said in the release.

The market share was boosted by its wide S1 portfolio of scooters and the rapidly expanding service network.

“The company aims to continue the momentum for the rest of the festive season leading up to Diwali, spearheading India’s transition towards electric mobility in the 2W segment,” Ola Electric said in a stock exchange filing.

Ola Electric has announced plans to double the company-owned service network to 1,000 centres by December 2024. The EV firm aims to increase penetration in tier-2 and tier-3 cities and enhance the after-sales services in these areas with an enhanced service network.

The company, which has been facing customer backlash over poor service quality, will also onboard 10,000 partners across sales and service by the end of 2025. Ola Electric plans to launch an EV Service Training Programme to train 1 lakh third-party mechanics.

Ola Electric shares tank nearly 9% last week amid rising complaints

Ola Electric shares had tanked nearly 9% last week following service quality concerns and its CEO’s spat on social media.

Following customer complaints on social media about poor after-sale service and a huge backlog at its service centres, consumer rights watchdog Central Consumer Protection Authority (CCPA) issued a show cause notice to Ola Electric to explain over 10,600 unresolved consumer complaints against it between September 1, 2023, and August 30, 2024.

The complaints related to delayed deliveries, poor repairs, unfair trade practices, misleading advertisements, and even the selling of second-hand items.

Moreover, the Union Ministry of Heavy Industries also ordered an audit of the company’s service centres.

These issues have raised concerns over Ola Electric’s eligibility for sops under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) and PM Electric Drive Vehicle (E-DRIVE) schemes.

Ola Electric sales declined 11% in Sept

Amid service quality concerns, September sales of Ola Electric vehicles dropped by 11% month-on-month to 23,965 units. These were also the company's lowest monthly figures in the past 11 months.

Ola Electric’s market share in the e-scooter segment also declined to 27% in September from a peak of 49% in the first quarter of FY25.