Ola Electric Explains Why It's Losing Marketshare: Explains How It Plans To Claw Back Sales

Ola Electric, once the unchallenged leader in the electric two-wheeler space, is no longer coasting comfortably at the top. The company has witnessed a steady decline in market share in recent months, even as the overall EV scooter segment continues to grow. In May 2024, Ola’s market share dropped to 31 percent, down from nearly 38 percent in early 2023. The numbers have sent alarm bells ringing at the company’s headquarters, prompting introspection, realignment, and a fresh plan to regain lost ground.

The EV major, which disrupted the scooter market with its flashy launches and aggressive pricing, now finds itself facing stiff competition from both established legacy brands and newer startups who’ve quietly been gaining traction. At the heart of Ola’s challenge is the transition from a first-mover advantage to a sustained product and service leadership position.

From Buzz to Battle

Ola’s early success came from a mix of smart branding, price undercutting, and a bold, digital-first approach. The S1 Pro, launched with premium features like a touchscreen dashboard, fast connectivity, and multiple riding modes, stood out at a time when rivals had no comparable product. The company also made direct-to-customer sales a central plank of its strategy, bypassing dealerships and building a tech-powered sales ecosystem.

However, this very approach has started to show its cracks. After the initial wave of enthusiastic buyers, many customers began reporting concerns related to aftersales support, service accessibility, and parts availability. This created an opening for traditional two-wheeler brands, who already had robust dealer and service networks in place.

Legacy manufacturers like TVS, Bajaj, and Ather have steadily expanded their electric portfolios, matching or even exceeding Ola in some tech features, while offering the assurance of trusted aftersales service. Meanwhile, newer brands such as River and Simple Energy are targeting urban consumers with refined designs and city-focused performance.

Why Market Share Is Slipping

A closer look reveals three key reasons behind Ola’s market share dip. First, product delays and quality control hiccups dented its early momentum. Second, the company’s decision to rely solely on its own service centres limited its reach and responsiveness, especially in Tier 2 and Tier 3 cities. Third, competitors now offer better financing options and increasingly compelling alternatives in terms of range, price, and performance.

In addition, buyers in the electric two-wheeler space have become more discerning. While early adopters were excited by futuristic features, today’s customers are seeking reliability, convenience, and trust. As Ola scaled rapidly, gaps emerged in customer support and issue resolution, damaging brand perception even among loyal users.

Ola’s Comeback Plan

Acknowledging these setbacks, Ola Electric is now undergoing what it describes as a “course correction.” The company is revamping its service model with a mix of owned and third-party centres to ensure faster response times and better reach. It has also started offering more flexible finance options and subscription plans to lower the entry barrier for new buyers.

On the product front, Ola is expanding its lineup with new variants like the affordable S1X, targeted at budget-conscious commuters. The company is also betting big on its mass-market electric motorcycle - the Roadster X. Ola has also invested in its own cell manufacturing plant, which is expected to go live soon, reducing dependence on imports and potentially improving cost efficiencies.

What Lies Ahead

Despite the recent slump, Ola remains a major player in the electric scooter segment. Its visibility, brand recall, and commitment to innovation give it a solid foundation. But staying ahead will require more than just bold product launches; it will demand consistent service, better customer engagement, and a shift from a disruptor’s mindset to that of a long-term brand custodian.

The next phase in Ola Electric’s journey will be less about sizzle and more about structure. The company now faces its biggest test yet: converting its early success into sustained market leadership in a maturing and fiercely competitive EV landscape.