**Ola Electric Faces Challenges Amid Declining Stock and Market Share**
Ola Electric is grappling with significant challenges as its stock value continues to decline, currently trading at ₹50 on the BSE. As India’s leading electric two-wheeler manufacturer, the company is experiencing a drop in investor confidence, particularly as it faces delays in the delivery of its first electric motorcycle, the Roadster, along with homologation issues.
In June 2024, Ola Electric held a commanding 49% market share, but this figure plummeted to 19% by December and only partially rebounded to 23% by April 2025. Despite still holding a considerable portion of the market, Ola Electric has lost ground to established competitors like Bajaj, which now leads the Indian electric two-wheeler segment with a 29% market share, primarily driven by its Chetak model.
The company’s troubles began to escalate last year when customer complaints regarding the S1 line of scooters surged. By October 3, 2024, the Central Consumer Protection Authority of India (CCPA) issued a show cause notice to Ola Electric, responding to nearly 11,000 complaints logged with the National Consumer Helpline since 2023. The complaints primarily revolve around manufacturing defects, the sale of second-hand vehicles as new, issues with refunds for booking cancellations, persistent problems despite servicing, overcharging, incorrect invoicing, and various battery-related concerns.
In January 2025, the Securities and Exchange Board of India (SEBI) issued a warning letter to Ola Electric for violating disclosure norms. The violation occurred when Chairman Bhavish Aggarwal announced new store openings on social media without prior disclosure to investors, which is required within 12 hours of such events.
By February 2025, Ola reported sales of over 25,000 units; however, government records from the Vahan portal indicated only about 8,600 actual vehicle registrations for that month. The company included bookings for its yet-to-be-delivered electric motorcycles and third-generation scooters in its sales figures to bolster investor confidence. Ola Electric attributed the discrepancy to a shift in in-house registrations as it renewed contracts with external agencies responsible for vehicle registrations. Notably, the company did not disclose its monthly sales figures for the first time in early April 2025.
As Ola Electric navigates these challenges, the future of its market position remains uncertain, with ongoing scrutiny from regulatory bodies and a need to address customer concerns effectively.
**FAQ**
**What are the main issues Ola Electric is currently facing?**
Ola Electric is dealing with declining stock value, delays in motorcycle deliveries, customer complaints about manufacturing defects, and regulatory scrutiny from the CCPA and SEBI.
