Shares of this leading electric vehicle (EV) company attract investor interest following a significant loss in market share and plans to recover it through exclusive discount offers.
Price Movement
In Friday’s trading session, the share price of Ola Electric Mobility Ltd reached an intra-day high of Rs.100.06 per share from its previous close of Rs.99.27 apiece, gaining around 1 percent. The shares retreated since then and are currently trading at Rs.97.21 per share.
What happened
India’s leading electric two-wheeler (2W) mobility solutions provider, Ola Electric, is actively promoting the sales of its S1 range of electric scooters. The company has encountered significant challenges recently, even recording its lowest sales figures for 2024 last month.
Ola Electric, which debuted on the stock market approximately two months ago, sold 23,965 vehicles in September, marking a month-on-month decline for the second consecutive month.
Its declining month-on-month sales have resulted in a drop in market share for five consecutive months, falling to 27 percent in September from over 50 percent in April, according to the data.
During this period, Ola’s closest rivals, TVS Motor, and Bajaj Auto, have narrowed the gap, with TVS gaining market share for five consecutive months and Bajaj for three straight months. As of now, TVS holds a market share of 20 percent, while Bajaj Auto’s market share stands at 21 percent.
Plans to regain market share
Amidst these challenges, Ola Electric has launched its BOSS (Biggest Ola Season Sale) campaign for the festive season. This limited-time offer allows customers to purchase the Ola S1 X 2kWh scooter for as low as Rs.49,999, along with additional festive benefits worth up to Rs.40,000.
Key highlights of the BOSS campaign include discounts of up to Rs.25,000 on the S1 portfolio, a complimentary 8-year/80,000 km battery warranty valued at Rs.7,000, and finance offers to provide discounts of up to Rs.5,000 on select credit card EMIs.
Additionally, customers can enjoy exclusive benefits such as a free MoveOS+ upgrade and Hypercharging credits, among other perks.
Management Commentary
Announcing the campaign, Bhavish Aggarwal, Chairman and MD, of Ola Electric, said, “We are excited to bring in the BOSS of all offers for our customers this festive season, making it the best time to buy an EV. BOSS is our biggest-ever festive offering yet, as we continue with our mission to #EndICEAge and deepen EV penetration across the country. With the biggest discounts, best deals, and attractive financing offers, this would be the perfect time for EVs to scale up and give ICE vehicles a run for their money.”
Financials
In its latest financial update, the company reported net sales of Rs.1,644 crore for Q1 FY25, marking a 32.2 percent increase from Rs.1,243 crore in Q1 FY24. Despite this growth in sales, the company continues to incur losses, posting a net loss of Rs.347 crore in Q1 FY25 compared to a net loss of Rs.267 crore in Q1 FY24.
Written by – Siddesh S Raskar
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