Ola Electric's Market Share Declines 50% in 2025

India's electric two-wheeler sector underwent significant transformation in 2025, as former market leader Ola Electric experienced a dramatic decline, losing over half its market dominance whilst established manufacturers including TVS Motor, Bajaj Auto, Ather Energy, and Hero MotoCorp expanded their presence, says a report by ET Auto. Data from the government's Vahan portal reveals Ola Electric's market position declined from 36.7 per cent in 2024 to just 16.1 per cent in 2025, with annual sales totalling 1,96,767 units, despite robust growth across the broader segment.

Traditional automotive manufacturers capitalised on extensive dealer networks, superior after-sales service infrastructure, and diverse product portfolios to systematically erode Ola Electric's advantage. The industry faced additional headwinds throughout the year, including supply chain disruptions linked to limited availability of heavy rare earth metals, exacerbated by geopolitical tensions surrounding China, which elevated both procurement costs and delivery pressures.

TVS Motor claimed the top position in 2025 with a 24.2 per cent market share, registering sales of 2,95,315 units, whilst Bajaj Auto secured second place with 21.9 per cent of the market.

"Competition within the electric two-wheeler arena will intensify considerably, encompassing both scooters and motorcycles," VG Ramakrishnan, managing partner at Avanteum Advisors LLP, was quoted as saying in the report.

The market restructuring coincides with operational difficulties at Ola Electric, which has faced mounting customer grievances regarding service response times and delivery reliability.

Ather Energy, considered Ola Electric's primary competitor, hit substantial sales growth primarily through its mass-market Rizta scooter model, increasing its market share to 16.2 per cent in 2025 from 11.3 per cent the previous year.

Hero MotoCorp registered significant progress, expanding its market presence to 8.8 per cent in 2025 from 3.9 per cent in 2024, propelled by growing consumer interest in its Vida electric two-wheeler portfolio.