INSUBCONTINENT EXCLUSIVE:
4 min read Last Updated : Oct 15 2024 | 11:57 PM IST
Under regulatory scanner, Bengaluru-based Ola Electric has witnessed an uptick in
its sales after facing a decline during the last few months
With sales reaching 17,315 units between October 1 and October 15, the company has also boosted its market share to 34 per cent, up from 27
per cent in September, in the electric two-wheeler (e2W) segment.
While this surge provides a breather for the EV manufacturer, industry
experts caution its adverse impact
The sales spike is largely fuelled by the festive season and discounts offered by Ola, which are unlikely to be sustainable in the long run
Moreover, despite this temporary boost, the current sales figures still lag behind those recorded over the past five months in this calendar
Season Sale), a seasonal push launched on October 3, coinciding with the festival season
off, while those eyeing the flagship S1 Pro could avail a Rs 5,000 exchange bonus
The Boss sale of Ola is already under regulatory scanner as the Automotive Research Association of India (ARAI) has raised concerns over the
stark contrast to the modest 5-10 per cent reductions offered by its competitors
is anticipated, as consumers are unlikely to opt for products priced above Rs 100,000 when they can snag one at half the cost
Yet, this boost is only a temporary fix; sustaining such steep discounts is not feasible and could jeopardise profitability in the long
its profitability, and other related details.
Among the top four players in the e2W market, Ola Electric takes the lead with the lowest
starting price of ?74,999, even before applying any discounts
Bajaj Chetak comes next with a starting price of Rs 100,000 while TVS Motor has a starting price of around ?1,07,000
The fourth player, Ather Energy, tops the group with a starting price tag of ?1,10,000
These four players cornered 85 per cent of the total 51,079 e2Ws sold in the first 15 days of October.
This pricing strategy positions Ola
discount was strategically implemented to safeguard its market share amid increasing competition, customer grievances, and heightened
However, the company benefits from government incentive schemes, particularly the Production Linked Incentive (PLI) scheme, which could help
industry players can push profitability further into the future, delaying returns
inevitable in the coming years.
The company posted a net loss of ?1,584.4 crore for FY24, as against ?1,472.1 crore loss during the
In the April-June quarter, its net loss stood at ?347 crore, up from ?267 crore in the same period last year.First Published: Oct 15 2024 |
