Ola Electric’s spark fades amid rising competition and mounting losses

Ola Electric Mobility Ltd. (NSE: OLAELEC), India’s leading electric two-wheeler maker, is struggling to maintain its early lead in a fast-growing but increasingly competitive market. Shares have plunged more than 60% since their August 2024 peak, as investors grow wary of intensifying rivalry from established players like Bajaj Auto Ltd. (NSE: BAJAJ-AUTO) and TVS Motor Company Ltd. (NSE: TVSMOTOR), alongside nimble challenger Ather Energy.

Once buoyed by ambitious expansion plans, Ola Electric now faces operational headwinds. A surge in customer complaints over product quality has weighed on brand perception, denting sales momentum. Analysts expect the company’s revenue from operations to edge down 0.45% in 2025 to ₹50 billion—marking a sharp reversal from the 90% growth recorded last year, according to Visible Alpha consensus estimates.

Losses are also set to deepen. Net losses are forecast to widen to ₹18.7 billion in 2025 from ₹15.8 billion the previous year, as the company continues to burn cash in a bid to shore up market share. With margins under pressure, consumer trust in flux, and intensifying Ola’s share of the electric scooter market is projected to drop from 34.6% in 2024 to 31% in 2025—and could decline further to just 21% by the end of the decade.

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