Why is Everyone on Dalal Street Talking About Ola Electric?

The electric two-wheeler industry of India is experiencing some notable changes, driven by integration of connectivity and smart features in motorcycles and scooters.

With the rapid evolution of technology, two-wheeler manufacturers are incorporating smart features to enhance the overall riding experience, safety, and convenience for users.

Connectivity features such as GPS navigation, smartphone integration, and vehicle-to-vehicle communication are becoming increasingly common.

Over the years, the two-wheeler market in India has experienced significant growth due to a combination of socio-economic factors and the country's unique transportation landscape.

The increasing urbanisation and population density in Indian cities have fuelled the demand for affordable and efficient personal transportation.

Two-wheelers, particularly scooters and motorcycles, provide a convenient and manoeuvrable solution for navigating congested urban streets.

And if there is one company which has accurately pounced onto this growing demand in the two-wheeler electric vehicles space, then its none-other than Ola Electric Mobility.

Ola successfully timed its entry into the market. With increasing petrol prices, conventional scooters have become costly to run, whereas the Ola electric scooter offers a cost-effective method of commuting at Rs 0.2 per km.

However, the journey since its listing has not been smooth. With over 10,000 customer complaints in the past year, the company has faced both significant highs and notable lows in a relatively short time.

Recently, the company has been the talk of the town due to its latest developments. Today, we will explore this further and examine the company's current standing and its prospects.

Let's take a closer look at the reasons why the stock has become such a hot topic in the market.

Senior Executives Step Down

Suvonil Chatterjee and Anshul Khandelwal, who had longstanding tenures with Ola Electric, have stepped down from their respective positions.

Chatterjee began his journey with the company in 2017 as head of design, later spearheading projects like ola krutrim and ola maps, before being promoted to Chief Technology and Product Officer in 2021.

Khandelwal, on the other hand, joined in 2018 as head of marketing and revenue at foodpanda, later transitioning to roles at Ola Foods and eventually becoming chief marketing officer at Ola Electric.

December Vahan Data: Decrease in Market Share for Ola

In December 2024, the company saw a change of guard in the fast-evolving electric two-wheeler space.

As per retail sales data from the VAHAN portal, Bajaj Auto has dethroned Ola Electic with the highest market share at 25%. This 3% jump from the previous month has made Bajaj Auto major grab the top spot in the EV sales race.

For Ola Electric, the story is reverse. The company's market share has fallen by 5% to come in at 19%. TVS retained its number two position at 23% market share.

Below is the table showing the monthly market share among the EV industry's peers.

Ola Reverse 2024: Reflecting on EV Milestones

Despite the leadership shake-up, Ola Electric unveiled its annual reflection, 'Ola Reverse 2024', on 27 December.

This report highlights India's extraordinary strides in EV adoption, with critical insights into the growing impact of the Ola S1 community on commuting habits, environmental benefits, and economic savings.

In 2024, the Ola S1 scooter community collectively saved Rs 13 bn in fuel costs, covering 5.5 bn km with over 8 lakh active users. The report underscores the environmental impact, with significant reductions in CO2 emissions and enhanced EV utility for daily commutes.

Unprecedented Expansion in 2024

Ola Electric also marked a year of robust growth in its distribution network, expanding to 4,000 stores nationwide, a four-fold increase.

This move, which includes over 3,200 new co-located service facilities, is one of the most significant expansions in EV infrastructure globally.

The company, since a longer period, has been receiving complaints of its customers dissatisfaction with its after sales services. This move is aimed to address the dissatisfaction and to boost the company's local footprint, particularly in smaller towns.

This expansion, alongside strong adoption in Tier-2 and Tier-3 cities, has bolstered Ola Electric's mission of making EVs the preferred choice for Indian commuters.

What Next?

Going ahead, Ola Electric is working aggressively on expanding its distribution and service network to strengthen its market position.

As part of its strategy, the company aims to have 2,000 company-owned outlets and currently operates 1,000 network partner stores, which it plans to increase further by March 2025.

This extensive network ensures that Ola's presence reaches deep into tier 2 and tier 3 towns, offering better access and service support to customers across India.

The company is also focused on launching a series of new products to diversify its portfolio. Over the next two years, Ola plans to roll out over 20 new vehicles, including scooters, motorcycles, and three-wheelers.

This includes the much-anticipated Roadster motorcycle series, set to launch in phases starting in March 2025.

How Ola Electrics' Share Price has Performed Recently

Ola Electric shares was listed on the public markets on 9 August 2024. On the listing day, the stock opened at Rs 76 per share and quickly surged to hit the upper circuit limit of 20%, closing at Rs 91.2, which reflected strong investor interest and confidence in the company's prospects.

However, the story has not been quite rosy since then. From the date of its listing, the share price has seen a fall of 7.2%.

In the past five days, Ola Electric's share price has fallen by 6.1%. In the past one month the share price has tanked 9.3%.

The recent updates about the company have affected the share price, as Ola Electric's shares saw a 5% decline immediately after the announcement regarding senior executives stepping down being made.

Following its debut, Ola Electric's share price has experienced significant volatility. The stock touched its all-time high after listing, of Rs 157.4, on 20 August 2024, and an all-time low of Rs 66.6, on 22 November 2024.

For more details about the company, you can have a look at Ola Electric factsheet and quarterly results on our website.

Happy Investing.

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