Ola Electric’s Sales Plummet 65 Percent In June 2025: Company Reports Rs. 870 Crore Loss

Ola Electric has reported a sharp decline in its performance for the fourth quarter of FY25, posting a net loss of ₹870 crore. This comes at a time when its monthly scooter sales have plummeted by 65 percent, shrinking from over 35,000 units in March to just under 13,000 in May 2025. More worryingly, the company's market share in the electric two-wheeler segment has fallen below 20 percent. These numbers mark a worrying shift for a brand that once dominated headlines and sales charts in the EV space.

While some ups and downs in monthly sales are not unusual, the scale and speed of this decline suggest deeper structural issues. Ola’s ongoing losses and declining sales could point to missteps in product planning, service network readiness, pricing strategy, or customer satisfaction. A once high-flying brand now seems to be in the middle of a challenging reset.

From Market Leader to Market Question Mark

Ola Electric had, until recently, occupied the top spot in the electric two-wheeler market with a commanding share. Its rise was fuelled by aggressive pricing, heavy marketing, and an early mover advantage in the premium e-scooter space. But the cracks are now beginning to show. The company has bled market share rapidly, with rivals like TVS, Bajaj, and Ather quietly gaining ground with consistent product improvements and expanding service networks.

Customer sentiment has played a role too. Ola’s after-sales service and product reliability have been under scrutiny in online forums and user communities. Reports of software glitches, panel fit issues, and long wait times at service centres may have chipped away at consumer trust. The company’s decision to lean heavily on a direct-to-consumer sales model may have worked during the early buzz phase but now seems to be hitting limitations in terms of reach and service accessibility.

Factory Plans and Financial Burn

Another critical aspect to consider is Ola’s investment-heavy approach. The firm is building what it claims to be the world’s largest two-wheeler factory near Krishnagiri, Tamil Nadu. While that move may pay off in the long term, the upfront cost of this ambition is visible in its balance sheet. The Q4 FY25 loss of ₹870 crore is a steep figure for a company that has not yet achieved profitability.

Its gigafactory plans for cell manufacturing and future expansion into motorcycles and electric cars may be stretching resources too thin too soon. For now, Ola’s focus appears split across too many verticals. Unlike traditional OEMs that scale slowly and deliberately, Ola’s tech-startup-style blitz-scaling might be colliding with the very real, physical complexities of vehicle manufacturing and service.

Pricing Games and the Reality Check

Pricing has also become a double-edged sword. Ola slashed prices on multiple scooters earlier this year, leading to a short-term spike in demand. But once the discounts ended, volumes dropped sharply, raising questions about how much of the earlier demand was genuine and sustainable. A dependency on price cuts to drive sales can be a risky game in an industry with tight margins and rising competition.

Moreover, as Fame-II subsidies reduce and consumer expectations evolve, brands that offer better quality, service, and long-term value are likely to win out. Ola’s initial advantage of a feature-loaded, connected scooter is no longer exclusive. Others have caught up, and the novelty factor is fading.

Can Ola Reclaim its Momentum?

The coming quarters will be crucial for Ola Electric. The company needs to stabilise its sales, restore customer confidence, and demonstrate that its losses are part of a planned investment cycle rather than uncontrolled burn. Ola’s future product pipeline includes the Gig range, an affordable entry-level scooter called the S1 Z, as well as more premium variants and the long-promised electric motorcycle.

Whether that strategy pays off will depend not just on the product but on execution. Faster service turnaround times, better hardware quality, and transparency around delivery timelines could help regain consumer trust. Scaling responsibly and prioritising customer satisfaction might serve the brand better than simply chasing volume.

Ola Electric still has brand recall, a tech-savvy team, and a broad vision for electric mobility. But unless it regains footing quickly, that vision could be overtaken by players who are choosing to grow slowly but sustainably. In the fast-evolving world of EVs, flashy launches and big promises are no longer enough. The road to dominance now runs through reliability, trust, and a grounded business model.