Ola Electric market share stands at 2.35% in the Indian two-wheeler sector as per Federation of Automobile Dealers Association (FADA) February 2024 data. In the electric two-wheeler segment, Ola Electric’s market share stands at nearly 40%. The market leader with a strong portfolio of electric scooters, Ola S1 Pro, Ola S1 Air and Ola S1 X+ is luring customers with heavy discounts. For instance, Ola S1 X+ priced at Rs 1,09,999 is available at Rs 84,999. The offer is valid till March 25, 2024. According to market sources, heavy discounts are mainly to clear inventory before the FAME II subsidy ends on March 31st 2024. FAME-II subsidies will be applicable to electric vehicles (EV) sold until March 31, 2024. FAME II was initiated in 2019 with an outlay of Rs 10,000 crore budget for three years (2022) to encourage electric vehicle adoption. FAME II was later extended to March 2024. The government had reduced incentive or subsidy under FAME II from Rs 15,000 per kWh of battery to Rs 10,000 per KWh in June 2023. On 13th March, the central government introduced the Electric Mobility Promotion Scheme which will be operational from April-July 2024 with an outlay of Rs 500 crore. This new scheme has given some time for the EV players to set their inventory levels in order.
Ola Electric’s market share in February 2022 stood at 0.4% in the two-wheeler retail market. Two years down the line, Ola’s market share has grown to 2.35% in February 2024. TVS Motors and Bajaj Auto are also playing aggressively in the electric two-wheeler market. Electric scooter monthly sales in India are around 75000 units. TVS motors market share is nearly 20% and Bajaj Auto surpassed Ather Energy and is now the third largest player in the e-scooter market with 14% market share. Bajaj Auto sold more than 10,000 Chetak e-scooters in both January and February 2024. While Ola Electric is more focused on the affordable electric scooter segment, TVS Motors has recently launched its premium electric scooter, TVS X priced at Rs 2.49 Lakh. The company’s mainstay electric scooter TVS iQube is doing extremely well constituting nearly 4% of its total wholesale volumes in December Quarter 2023. Bajaj Auto has also recently launched a premium variant of Chetak and the company aims to touch 15,000 units per month by March Quarter 2024. Bajaj Auto’s Chetak has crossed Rs 1,000 crore in revenue and plans to enter 200 new cities in the next few months. While TVS Motors’s TVS iQube was launched in January 2020, a year ahead of Ola electric scooter, Ola electric has taken the Indian electric two-wheeler sector by storm.
Players like Ola Electric are offering affordable electric two-wheelers competing with well established ICE companies, TVS Motors and Bajaj Auto. This has been possible only with the central government support and implementation of FAME I (2015-19) and FAME II (2019-24). The EV sector has successfully crossed the incubation stage propelled by FAME I and II incentives. While FAME covers e-rickshaws, electric four-wheelers and e-buses, two-wheelers have been the largest beneficiaries. So, how will the electric scooters segment perform with the withdrawal of government subsidy. Market leader, Ola Electric seems to be highly optimistic. The company plans to enter the electric three-wheeler market and launch its electric motorcycle in 2024. And not to forget its upcoming initial public offer (IPO) in 2024. The next few months will give a better picture.
