Ola Electric hits record registrations, secures 40% EV 2W market share ahead of ₹5,500 crore IPO

Ola Electric gearing up for a ₹5,500 crore IPO after filing its Draft Red Herring Prospectus last month, has clinched an impressive market share of over 41% in the electric two-wheeler domain. This surge marks its highest achievement in CY23, boasting 30,219 registrations last month alone.

Ola Electric demonstrated robust quarterly performance, with a quarter-on-quarter growth of 48%, amassing a total of 83,963 registrations in the quarter concluding in December. This achievement also reflects a substantial year-on-year growth of 68% when juxtaposed with the same quarter in the previous year.

The surge in Ola Electric's market share appears to be influenced, in part, by a decline in registrations from its top competitors - TVS, Bajaj, and Ather - compared to their November figures.

In November, Ola had a market share of 33.5%, trailing behind Bajaj and TVS, which collectively held 34.6%. However, December saw a notable shift, as their collective share dwindled to 30.8%, mainly due to TVS witnessing a significant 36% drop in registrations from its peak in November.

Despite this remarkable growth for Ola Electric, the overall two-wheeler market in India during CY23 fell short of reaching the one million mark, recording only 0.82 million registrations. Factors such as reduced subsidies mid-year and regulatory challenges were attributed to this shortfall.

This challenging landscape has prompted a rapid consolidation within the industry, with the top four players now commanding a substantial 73.5% of the market share, a significant leap from less than half in CY22. However, the industry's target of hitting 1.2 million registrations in the fiscal year appears distant, given that registrations from April to December only amounted to 0.61 million, just half the projected target.

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