India’s two-wheeler sector is one of the largest in the world, driven by the need for affordable, efficient transportation. Major players like Hero MotoCorp, Honda Motorcycle & Scooter India, Bajaj Auto, TVS Motor, and Royal Enfield dominate the market. The growing middle class and
increasing urbanization continue to fuel demand for both commuter bikes and scooters. Alongside traditional vehicles, the sector is seeing a shift towards electric vehicles (EVs) with companies like Ather Energy, Ola Electric, and Bajaj introducing innovative electric models, aligning with the global push for sustainable mobility.
India is also witnessing the rise of high-end motorcycles, with brands like Harley-Davidson, KTM, and Ducati catering to premium customers. With India being one of the largest markets for two-wheelers, the sector’s future looks promising, driven by the increasing adoption of electric models, demand for premium bikes, and evolving consumer preferences. The market holds immense growth potential, especially with advancements in technology and a growing focus on sustainability.
Bajaj’s Expansion in the EV Market
Bajaj Auto is aggressively expanding its presence in the electric two-wheeler market. With the launch of the Chetak Electric scooter, the company has made significant strides in the EV sector. The Chetak has been well-received for its stylish design and advanced technology, including a range of up to 95 km on a single charge.
Bajaj is also planning further EV launches to tap into the growing demand for sustainable mobility, aiming to capture a larger market share in the electric two-wheeler segment.
TVS Motors’ Electric Vehicle Innovations
TVS Motors is also rapidly expanding its footprint in the electric two-wheeler market with models like the iQube and the upcoming iQube ST. The iQube, known for its reliable performance and smart features, offers a range of 75 km on a single charge.
TVS has been investing heavily in the EV segment, with plans to enhance its product lineup and broaden the reach of electric models across urban and rural markets. With a focus on innovation and sustainability, TVS is positioning itself as a key player in India’s EV revolution.
Problems with Ola
Resignation by top management
Suvonil Chatterjee: Chief Technology and Product Officer, resigned from Ola Electric. He joined in 2017 as Head of Design and played a key role in projects like Ola Maps and Krutrim.
Anshul Khandelwal: Chief Marketing Officer, resigned from Ola Electric. He joined in 2018 as Head of Marketing and was part of the leadership team at Ola.
N Balachandar: Group Chief People Officer, stepped down in November.
Sidharth Shakdher: Chief Business Officer, Ola Consumer, resigned in October after nine months to join Paytm as Chief Marketing Officer and Business Head.
Mahesh Alanthat: Vice President and Head of Sales, Ola Electric, resigned in October. Kartik Gupta: Chief Financial Officer, ANI Technologies (Ola’s parent), resigned in May. Hemant Bakshi: CEO, of Ola’s mobility business, resigned in May.
The resignation of key executives at Ola Electric and its parent company, ANI Technologies, raises concerns among investors as it signals potential instability within the leadership team. High-level departures, particularly from positions like Chief Technology Officer, Chief Marketing Officer, and CEO, can disrupt strategic initiatives, delay projects, and affect overall company performance. Such exits may also create uncertainty about the company’s future direction, leading to diminished investor confidence and negatively impacting stock prices and growth prospects.
Employee Layoff
In the past few months, Ola Electric also laid off 300-400 people across departments but mainly in manufacturing and supply-chain management roles. The company is also facing a decline in market share, increased customer complaints, and a fall in its stock price.
In its IPO prospectus, Ola Electric, which listed on the bourses in August this year, said it witnessed a high employee attrition rate in the past. In FY24, the employee attrition rate was 44.25%.
Conclusion
While Ola Electric faces significant challenges with high-level executive departures and concerning employee attrition rates of 44.25%, established players like Bajaj Auto and TVS Motors are strategically strengthening their position in the electric two-wheeler market. Bajaj’s Chetak and TVS’s iQube have gained market acceptance with their reliable performance and advanced features. The mass exodus of top management and layoffs of 300-400 employees at Ola signal potential instability, giving traditional manufacturers a competitive advantage in India’s growing electric mobility sector.
Written By Dipangshu Kundu
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