Ola Electrical stormed previous the 40% market share milestone in electrical two-wheeler gross sales in December, pushed by deep reductions and an intensive providing of aggressively priced e-scooters at a number of worth factors. The corporate provided reductions nearing 18% or ₹20,000 on the S1 X+ electrical scooter, its most cost-effective providing available in the market, because it moved to seize a bigger share of the e-two-wheeler market forward of a possible public itemizing early this yr.
Whereas there have been negligible reductions on the TVS iQube and Bajaj Chetak after the festive season, Hero’s Vida V1 and Ather’s 450 vary of scooters had money reductions of simply ₹6,500, in keeping with a report by Motilal Oswal. Ola was adopted available in the market share pecking order by TVS Motor (16.2%) and Bajaj Auto (13.7%). No different firm touched double-digit market share in December.
Ola is planning to proceed the low cost on the S1 X+ in January, an individual conscious of the matter stated on situation of anonymity. It’ll additionally launch promotional provides every month, reminiscent of alternate bonuses, regardless that they will not be money reductions.
That is the primary month in almost three years that any firm has crossed 40% market share on this section. Ola’s share was up from 32.6% in November, and forward of its earlier greatest market share of 38.4% in June, a Mint evaluation of information from the Centre’s Vahan database confirmed.
Ola Electrical’s entry into the electrical two-wheeler market in late 2021 got here when the section was extremely fragmented, with a number of gamers contending for volumes and the marketplace for low-speed scooters flourishing, too. Its entry had break up the market share of the leaders at the moment, and between then and April 2023, no firm had crossed the 30% market share in any month.
Ola’s rivals have their work minimize out for them. As community and distribution growth with one or two merchandise provides technique to Ola Electrical’s wider vary of merchandise at enticing costs, increasing market share for its rivals will probably be a troublesome activity with out extra fashions that tackle newer markets and segments.
Bajaj Auto may very well be benefiting from market share growth and better product availability now, however analysts Mint spoke to warn that TVS Motor’s single-product providing (iQube) could also be inflicting fatigue, and incremental gross sales from extra showrooms will stay restricted, given it already covers main markets for the section. TVS can also be partially provide chain constrained, with most volumes at its present manufacturing facility restricted to about 25,000 items per thirty days.
The opposite distinguished firm, Ather Vitality, was the fourth largest vendor in December with an 8.6% market share.
“For Ather, too, there’s an pressing must broaden its product vary and tackle extra segments, work that’s already within the works,” an analyst informed Mint on situation of anonymity.
In a press release, Anshul Khandelwal, chief advertising officer, Ola Electrical Applied sciences Pvt. Ltd, stated, “We consider that we’ve continued our market management for yet one more quarter on the again of our robust product lineup comprising S1 Professional, S1 Air, and the S1 X+. Our ‘December to Bear in mind’ marketing campaign has been an enormous success, bringing 1000’s extra below the EV fold.”
Ola Electrical not too long ago expanded its scooter portfolio to 5 merchandise. Priced at ₹1,47,499, the S1 Professional (second technology) is the corporate’s flagship premium EV scooter whereas the S1 Air is offered at ₹1,19,999. It has moreover launched the S1X in three variants—S1 X+, S1 X (3kWh), and S1 X (2kWh). In the meantime, a complete of 75,366 electrical two-wheelers have been bought final month, up 16.6% year-on-year, nevertheless it was additionally the primary sequential decline in six months after a festive push led to 91,734 gross sales in November. The document for final yr was in Could 2023, when 105,565 electrical two-wheelers have been bought.
In all of 2023, almost 860,000 electrical two-wheelers have been bought, up 36% since 2022. The yr ended with a 31.1% share for Ola Electrical, 19.4% for TVS Motor and 12.2% for Ather Vitality.
