Ola Electric loses market lead to TVS Motor after sales decline

Ola Electric has lost its leading position in India’s electric two-wheeler market to TVS Motor after a 42% decline in sales in April 2025.

Ola registered 19,709 vehicles last month, capturing a 21.46% market share. TVS Motor surpassed them with a 21.5% share, while Bajaj Auto and Ather Energy captured 20.7% and 14.3%, respectively.

In April 2024, Ola Electric registered 34,163 vehicles and peaked at 53,647 units in March 2024. However, their target of 50,000 monthly sales to achieve EBITDA breakeven remains unmet.

The company is also under regulatory scrutiny due to discrepancies in sales data, vehicle quality issues, and operational irregularities.

🔗 Source: The Economic Times

🧠 Food for thought

1️⃣ India’s electric two-wheeler market reflects a surprising power shift

The recent leadership change from Ola Electric to TVS reveals how traditional automakers are successfully challenging EV startups in India.

Ola had previously dominated for five consecutive quarters since September 2022, commanding approximately 35% market share by November 2023 1.

Now TVS has emerged as the leader with 19,736 units and 21.5% market share in April 2025, while achieving remarkable 154% year-on-year growth compared to April 2024 2.

This shift demonstrates a broader trend where legacy manufacturers are effectively leveraging their decades of manufacturing expertise, established distribution networks, and brand trust to gain ground in the EV sector.

What makes this transition particularly noteworthy is that these traditional players initially appeared slow to embrace electric mobility but have successfully executed deliberate, measured strategies that are now paying dividends.

The overall electric two-wheeler market continues to show strong momentum with 40% year-on-year growth to 91,791 units in April 2025 2, indicating that the sector’s growth remains robust despite leadership changes.

2️⃣ Contrasting pathways to EV success in the Indian market

TVS Motor’s methodical approach to the EV market stands in stark contrast to Ola Electric’s aggressive expansion strategy, offering important lessons about sustainable growth.

While Ola focused on rapid scaling through its Futurefactory and ambitious sales targets, TVS steadily built its presence, surpassing 200,000 iQube sales by October 2023 since its launch in 2021 3.