Ola Electric's market share increases after festive discounts, stocks rebound

Ola Electric has bounced back, both in sales and share markets, after it recorded higher sales during first few weeks of the festive month as well as its clarification to Automotive Research Association of India (ARAI) on the selling price of its electric scooter S1 X 2KWh version. On Tuesday, the EV maker saw its share rebound by up to five per cent while its market share grew to 34 per cent in the first two weeks of October, according to auto sales data on Vahan portal.

According to the Vahan portal, Ola Electric has already registered 15,672 electric two-wheelers till October 14 as in on track to beat its September sales figure of 23,965 electric scooters. Powered by festive discounts of up to ₹25,000 for a limited period of time. Ola Electric currently offers three versions of its electric scooter - S1X, S1 Air and S1 Pro. All these models have been offered at discounted rates this season.

Ola Electric hopes the upward trend will continue till the end of the month when India celebrates Diwali. The EV maker has already launched discount schemes around the festival to increase sales. Bhavish Aggarwal, Founder and CEO at Ola Electric, reacted to increase in market share by saying, “Strong festive season start. Great to see customers continuing to shift towards EVs from ICE. We’re also working overtime to scale up our service capacity. More updates over coming weeks."

Ola stocks rebound, market share up

On Tuesday, Ola Electric also saw its shares rebound by up to five per cent after it issued a clarification to ARAI on pricing of its EVs. On Monday, Ola shares had dropped by three per cent, the third straight day its prices went down after recent controversy over its sales and services. Ola Electric had a mixed festive season so far trying to push sales up through several discount schemes as it continues to fend customers and the Centre over alleged poor services. The EV maker received a show-cause notice from the Central Consumer Protection Authority (CCPA) after nearly 10,000 consumer complaints were registered on the National Consumer Helpline in the past 12 months.

Ola clarifies after ARAI notice

On October 8, ARAI had asked Ola to clarify on the pricing of one of its electric scooters after complaints of inaccurate invoicing. It came after the company reduced the price of the EV as part of its festive discount offer. Ola clarified by saying, “We have not changed the price of Ola S1 X 2KWh; and we are running a very limited time festive campaign for a brief period where we are giving a general discount of ₹5,000 to every customer and higher discount of ₹25,000 to only a few customers and that too only with very limited inventories."

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After dominating the electric two-wheeler space for months, the EV maker started to lose grip since the start of the financial year. Monthly sales saw dip in August and September just after the company went public in a much-followed IPO (Initial Public Offering).

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