Ola Electric has fallen to the third position in India’s electric two-wheeler market as of May, according to data from the government-run Vahan portal.

The company’s market share decreased to 20% during the first 26 days of May, down from over 50% 13 months ago.

The company registered 15,221 vehicles from May 1 to May 26. This marks a decline of around 60% compared to 37,388 units sold in May last year. Its market share also dropped slightly from 22.1% in April.

Meanwhile, TVS Motor and Bajaj Auto have increased their market shares to 25% and 22.6%, respectively, despite minor decreases in sales volume.

Ather Energy’s market share decreased to 13.1% from 14.9% in April, with 9,962 units registered during the same period.

🔗 Source: The Economic Times

🧠 Food for thought

1️⃣ Legacy automakers gaining edge in EV transition through manufacturing experience

TVS Motor and Bajaj Auto have successfully overtaken Ola Electric in India’s electric two-wheeler market, demonstrating how established manufacturers can leverage their decades of production expertise to gain advantage in emerging sectors.

While Ola’s market share has dramatically fallen from over 50% to just 20% in 13 months, TVS has captured 25% of the market and Bajaj 22.6% 1.

Legacy players benefit from existing manufacturing facilities, established supply chains, and distribution networks that new entrants must build from scratch, providing significant cost advantages during industry-wide sales contractions.

The quarterly financial contrast is striking. While Ola faces operational challenges, Bajaj Auto reported a net profit of ₹1,936 crore (up 35% YoY) and TVS achieved ₹485 crore (up 18% YoY) 1, demonstrating the financial resilience that comes with diversified product portfolios during market transitions.

2️⃣ India’s EV adoption journey hampered by structural challenges despite policy support

Despite ambitious government targets of 30% fleet electrification by 2030, India’s current EV market penetration remains at just 6.5%, highlighting the gap between policy aspirations and market reality 2.

The Production Linked Incentive (PLI) scheme, with an allocation of ₹25,938 crore for 2021-2028, aims to boost domestic manufacturing, but disbursement has been slow and manufacturers struggle to meet the 60% domestic value addition requirement within five years 23.

India’s heavy reliance on imported components, particularly lithium and cobalt for batteries (about 80% imported), creates vulnerability to global supply chain disruptions and price fluctuations 4.