Ola Electric’s market share dips below TVS amid sharp drop in April sales

Struggling one other setback, electrical two-wheeler maker Ola Electric has ceded its management place out there to legacy rival TVS Motor, posting a 42% year-on-year drop in gross sales final month.In response to knowledge from the government-run Vahan portal, the Bengaluru-based firm recorded 19,709 car registrations in April, translating to 21.46% market share. TVS Motor narrowly edged forward with a 21.5% share in India’s more and more aggressive electrical two-wheeler market.

Bajaj Auto and Ather Energy additionally made positive factors, capturing 20.7% and 14.3% of the market, respectively, throughout the identical interval.

In April 2024, Ola Electrical had registered 34,163 autos, and only a month prior, in March 2024, it had hit a peak of 53,647 items.

The most recent numbers mark a pointy distinction to the month-to-month gross sales goal referenced by CEO Bhavish Aggarwal in the course of the firm’s final quarterly earnings name, the place he mentioned the auto phase might attain earnings earlier than curiosity, taxes, depreciation, and amortisation (Ebitda) breakeven with month-to-month gross sales of round 50,000 items within the coming quarters.

The corporate has additionally come below rising regulatory scrutiny in latest months over points resembling gross sales discrepancies, car high quality considerations, and the shortage of commerce certificates at its retail areas.

In February, whereas Vahan knowledge confirmed solely 8,652 car registrations for Ola, the corporate reported gross sales of 25,000 items in regulatory filings—elevating questions on knowledge consistency. Ola attributed the hole to a short lived backlog attributable to contract renegotiations with registration service suppliers Rosmerta and Shimnit India.Nevertheless, the discrepancy triggered inquiries from the Ministry of Heavy Industries and the Ministry of Street Transport and Highways.

Just lately, the Maharashtra Transport Division issued a discover directing regional transport workplaces to take rapid motion in opposition to Ola Electrical showrooms and repair centres working with out legitimate commerce certificates, as reported by ET.

Within the October–December quarter, the corporate’s web loss widened 50% year-on-year to Rs 564 crore, whereas its working income plunged 19%.

Shares of Ola Electrical had been buying and selling at Rs 48.48 on the BSE at 2:58 PM on Friday.