EV Startup battle: Ather Set To Overtake Ola Electric This Month

While startups led the way in the early stages of the Indian electric two-wheeler industry, the well-established or ‘legacy’ brands have caught up with the kids on the block. Ola Electric created a stir in the electric two-wheeler market at one point, capturing over 50 per cent of the market and its domination was unprecedented. But Ola’s fortune in the marketplace has been changing as the ‘legacy players’ stepped up efforts to build their respective new business of EVs. The EV startup relinquished its top position to Bajaj Auto, and then a surging TVS also overtook Ola, relegating it to third position earlier this year. 

While the biggies take the top two positions, startups Ola and Ather now battle for the last place in the podium. Based on data available, the sales difference between Ather and Ola is just around 500 units currently. The same was over 5,000 units in June. With a slew of new product launches, especially the entry in the electric motorcycle space, Ola was banking to improve sales. However, that is yet to happen. 

In fact, Ola Electric’s market share in July stood at 17.2 per cent (down from 19 per cent in June), whereas that of Ather Energy has gone up to 16.5 per cent (up from 14 per cent in April). Ather’s sales charge is led by the Rizta, its first family electric scooter which has helped the brand expand its reach to a new customer profile too. In the future, Ather has plans to enter the electric motorcycle business, and is also developing a more affordable electric scooter platform as diminishing subsidies have increased the cost of EVs. 

Ola’s performance in a way is also reflective of the overall EV market, which has contracted 21.6 per cent with only a few days remaining for July to come to a close. The other big challenge for the whole segment is the rare earth magnet crunch as China has put restrictions on exports of this critical raw material. Bajaj Auto has confirmed that if the supplies don't commence soon then it might have to halt production for the Chetak electric scooter. 

Sources tell Acko Drive that all other brands are suffering due to the rare earth magnet crisis. So, while Ather may overtake Ola soon, and the race may be akin to a musical chair game, the more serious issue is the overall journey of the electric two-wheeler segment and how brands tackle the sticky situation of the rare earth magnet availability.

While the race between the startups hot up, the other two biggies of the two-wheeler world – Hero and Honda haven’t been as successful yet as their peers, but are trying to gain a good foothold. Honda which entered the EV space a few months back, has sold just 4,178 units between February and May, 2025. Out of the above, the Honda QC1 accounted for 80 per cent of the sales volume as the Honda Activa e is only available in Bengaluru. As for Hero MotoCorp, the company managed 7,664 units in June itself cementing its gift position in overall sales. Hero will be banking on the new Vida VX2 to revive sales as it comes with BAAS (battery as a service) plan which makes it among the most affordable electric scooters on sale in India.