Ola Electric’s share of India’s electric two‑wheeler (E2W) market has plunged to under 6% as of January 2026, reflecting a rapid loss of ground in a fast‑evolving sector. The decline follows a year of operational and perception challenges that have allowed rivals to consolidate gains across urban and semi‑urban markets.
Sharp decline over 12 months
Industry registration data show Ola Electric’s market share fell to about 5.8% in January 2026, down from nearly 25% in January 2025. Monthly registrations for the company were near 5,500 units in January 2026, compared with peak months during which volumes frequently exceeded 30,000 units.
Across 2025 the company averaged mid‑teens market share, substantially below its earlier leadership level, indicating the speed and scale of the shift in competitive dynamics.
Operational problems and customer confidence
Persistent product quality and after‑sales issues have been central to Ola’s decline. Customers and industry watchers point to servicing delays, recurring software glitches and inconsistent customer support as major pain points. Though Ola expanded its service network and rolled out process improvements, these measures have not yet restored broad consumer confidence.
Safety concerns around electric scooters — amplified on social media and in local markets — further dented buyer sentiment. First‑time EV buyers, who weigh trust and peer recommendations heavily, have been particularly sensitive to such reports.
A brief rebound that faded
Ola registered a temporary recovery in April 2025, when market share briefly rose above 21%. That rebound, however, did not hold: from mid‑2025 the company’s registrations eased again as competitors enhanced product portfolios and expanded distribution.
Competitors gain ground
Rivals such as Ather Energy recorded strong year‑on‑year growth, benefitting from a focus on product reliability, premium positioning and a growing charging network that appealed to urban and semi‑urban buyers. Established two‑wheeler manufacturers, including TVS Motor and Bajaj Auto, also strengthened their EV offerings, leveraging extensive dealer networks, manufacturing scale and brand trust to maintain steady sales.
Investor reaction and market outlook
Ola Electric’s market share erosion has weighed on investor sentiment and contributed to sustained pressure on the company’s stock price. Market participants are watching closely to see whether Ola can stabilise operations, resolve service issues and restore customer trust amid intensifying competition.
India’s E2W market continues to expand, but customers are increasingly service‑conscious and willing to switch brands. Ola’s prospects in 2026 will hinge on its ability to deliver consistent product quality, strengthen after‑sales support and demonstrate operational stability—factors that will determine whether the current slump is a temporary setback or a longer‑term realignment in the country’s EV landscape.
