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Ola Electric’s market share halves in 2025 as legacy players tighten grip
India's electric two-wheeler market witnessed a sharp realignment in 2025, with last year's leader Ola Electric seeing its market share drop by more than 50%, even as rivals TVS Motor, Bajaj Auto, Ather Energy, and Hero MotoCorp gained ground.
Ola Electric's share fell from 36.7% in 2024 to 16.1% in 2025, with the company selling 196,767 vehicles during the year, even as overall retail momentum in the segment picked up, according to data from the government-run Vahan portal.
Legacy manufacturers, aided by large distribution networks, stronger after-sales support, and a broader product lineup steadily closed the gap.
The year proved challenging for several electric vehicle makers in general amid disruptions in the availability of heavy rare earth metals, driven by geopolitical tensions involving China, which added pressure on supply chains and costs.
TVS Motor emerged the market leader in 2025 with a 24.2% share, selling 295,315 units during the year, followed by Bajaj Auto with 21.9%.
“There will be a lot more competition in the electric two-wheeler space, not just in scooters but also in motorcycles,” said VG Ramakrishnan, managing partner at Avanteum Advisors LLP, adding that incumbent manufacturers are now fully leveraging their scale, brand recall, and service reach.
Queries sent to the companies did not elicit any responses as of press time Sunday.
The realignment in the electric two-wheeler segment comes amid Ola Electric facing operational challenges and customer complaints around service turnaround times and delivery consistency.
Ather Energy, widely seen as Ola Electric's closest rival, boosted its sales majorly through the mass-market Rizta scooter, taking its market share to 16.2% in 2025 from 11.3% in the previous year.
Hero MotoCorp also made notable inroads, expanding its share to 8.8% in 2025 from 3.9% a year earlier, driven by rising traction for its Vida electric two-wheeler range.
The shift became more pronounced towards the end of the year. In December, TVS accounted for nearly one-third of all electric two-wheeler sales, while Bajaj and Ather together made up another 46%.
ETtech Although overall electric two-wheeler sales dipped during the month, Ola Electric saw a marginal month-on-month uptick in market share to 8.4% from 7.4% in November.
Ramakrishnan said the entry and scaling up of legacy manufacturers was always expected to compress the market share of early disruptors. “Once legacy players enter, early movers start losing market share. That was always baked into the industry,” he said.
What lies ahead for Ola Electric?
The government's recent incentives worth Rs 366.78 crore under the PLI (production-linked incentive) scheme for automobiles and auto components is seen as a relief for Ola Electric.
However, industry executives cautioned that stabilising sales and fixing after-sales execution will be critical to arrest further erosion in retail momentum.
Last week, Ola Electric announced the expansion of its Hyperservice initiative with the launch of dedicated centres, offering customers same-day service guarantees at no additional cost.
Beyond fixing service issues, managing residual value and improving the resale value of its scooters could also emerge as key levers for companies like Ola Electric to regain consumer trust, Ramakrishnan said.
The electric two-wheeler market is entering a more mature phase, where growth will be increasingly driven by economics rather than subsidies.
For legacy automakers, sustaining growth will hinge on timely product refreshes and expanding the EV value proposition beyond early adopters, experts said.
Source: EconomicTimes
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